House4U Ltd has two departments, each regarded as a separate CGU. The carrying amounts of the assets within eachdepartment at 30 June 2022 are as follows:FurnitureElectricalDepartmentDepartmentS$Cash14,00020,000Accounts receivable (net)44,00022,000Inventories68,00082,000Equipment180,000160,000Accumulated depreciation - equipment(70,000)(100,000)Vehicles60,000Accumulated depreciation - vehicles(20,000)Building240,000Accumulated depreciation - building(40,000)Patent80,000Goodwill20,00020,000House4U Ltd determined that the assets of the company may be impaired and calculated the recoverable amounts foreach CGU on 30 June 2022 as: $320,000 for Furniture Department; and, $395,000 for Electrical Department.Required:Prepare the journal entries to record any impairment loss for each department at 30 June 2022. Show allcalculations.

Cash =14000 + Account receivable =44000 + Inventory =68000 + Equipment =110000…

Answered: Prepare the journal entries to record…

Business

Accounting

Prepare the journal entries to record any impairment loss for each department at 30 June 2022. Show all calculations.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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