The Salient company uses the revaluation model for its building. It acquired a building on January 1, 2018 for $450,000 cash. The useful life is 25 years and the residual value is $50,000. On December 31, 2019 and December 31, 2021, the fair value of the building was assessed at $422,000 and $380,000, respectively.   Required- Prepare all the journal entries from January 1, 2018 to December 31, 2021. Determine the balance of the Accumulated Other Comprehensive Income (AOCI) account on December 31, 2019 and December 31, 2021, and specify whether it is a debit or a credit balance.

Q: Cutter Enterprises purchased equipment for $93,000 on January 1, 2021. The equipment is expected to…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: depreciation is computed on the straight line.

A: Annual depreciation = (Cost or fair value - Salvage value)/Remaining useful life in years

Q: At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $…

A: At beginning of year 2019, Itlog company acquired property at cost = $2000000 Useful life of…

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $77,400. The…

A: Given information:

Q: Bili Company acquired a building on January 1, 2019 for P 9,000,000. At that date the building had a…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: Credit Corp Ltd. purchases a building on July 1, 2019, for $500,000. The building is expected to…

A: The activities relating to the building from July 1,2019 to june 30,2023 fallow below statement:…

Q: • Hall, Inc. purchases an asset for $3,000,000. As of December 31, 2021, the Accumulated…

A: From the given information, The asset’s carrying cost = $3,000,000 - $1,200,000 = $1,800,000…

Q: On December 31, 2021, management of Jines Construction committed to a plan for selling an office…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: Grumpy Inc purchased a machine on January 1, 2021, at a cost of $120,000. The machine was originally…

A: Depreciation is the reduction in the value of an asset due to normal wear and tear, passage of time,…

Q: On April 1, 2021, Brandy Company had a machine with a cost of P5,000,000 and accumulated…

A: Given information, Cost =P5,000,000 Accumulated depreciation=P3,750,000 Estimated selling price…

Q: Forrester Company purchased a machine on January 1, 2019 for $60,000, with a 5-year life, and a…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Bataan Company purchased a machinery that was installed and ready for use on January 1, 2019 at a…

A: Depreciation rate under double declining rate = =   2 / useful life x 100%    Given…

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $70,100. The…

A: Introduction: A journal entry is being used to record a corporate transaction in the accounting…

Q: Bataan Company purchased a machinery that was installed and ready for use on January 1, 2019 at a…

A: Depreciation expense is the cost portion which is allocated to the fixed assets of the company and…

Q: On January 2, 2020, KENNYInc. made a test of impairment on one of the buildings carried as plant…

A: After transfer ,rule of new IAS applies.

Q: On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as…

A: Revaluation surplus is disclosed in the equity section of the company’s statement of financial…

Q: Explain briefly what you understand by the term “depreciation” as used by accountants. In what…

A:

Q: rple Company acquires an office building at a cost of $1,000 on January 1, 2021. The building…

A: Step 1 Any upward increases in the value of capital assets are held in a revaluation surplus, which…

Q: 0 and building at ₱70,000,000. The original useful life of the building is 20 years and depreciation…

A: Given: To calculate the revaluation surplus on Dec 31, 2020 as,

Q: On October 1, 2021, Hess Company places a new asset into service. The cost of the asset is $120,000…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…

A: Given Information: Replacement cost on December 31,2019      $1,500,000 Purchased on January 1,2017…

Q: On December 31, 2020, Ehrlich Inc. has a machine with a book value of $260,000. The original cost of…

A: Calculation of Net Book Value on June 1, 2021      Amount  Net Book value as on December 31,…

Q: On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was…

A: To a change in the estimate of residual value and remaining useful life of an asset, the prospective…

Q: On January 1, 2021, Alma Company showed land with carrying amount of P10,000,000 and building with…

A: Annual depreciation on building =P60,000,000 /20 years = P3,000,000 Life spent on January 1, 2021 =…

Q: On January 2, 2022, Milk Tea Company acquired a building costing P6,000,000. Milk Tea Company…

A: Impairment Gain: An asset is said to have suffered an impairment if its value has been permanently…

Q: On January 1, 2019, Ginger Company purchased land and a building for a total cash price of…

A:

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $75,900. The…

A: Cost of equipment  $72,000   Expected useful life 6   residual value $15,000   fair value…

Q: On January 01, 2019, the AI Wadi Company purchased machinery for OR 45,000. The estimated useful…

A: Double-declining-balance method: The depreciation method which assumes that the consumption of…

Q: On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and building…

A: The question is multiple choice question Required  Choose the Correct Option.

Q: On January 1, 2020, PEONY Company showed land with a carrying amount of ₱10,000,000 and building…

A: Revaluation surplus = carrying amount - revalued amount

Q: On July 1, 2020, Concord Corporation purchased factory equipment for $283000. Salvage value was…

A: Solution: Under Double declining balance method of depreciation, depreciation is based on double the…

Q: On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and building…

A: Revaluation surplus means when carrying value of the assets in the books is less than fair value or…

Q: On January 1,2015, Rekto Corporation acquired a building at a cost of $22,000,000. The building has…

A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…

Q: On January 1, 2016, Cookie Inc. purchased an equipment for P1,970,000. On this date, the equipment…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated…

A: Solution: Under sum of years' digits method of depreciation. Depreciation is based on sum of digits…

Q: What amount should be reported as impairment loss on December 31, 2019? What is the carrying amount…

A: Given information is: On December 31, 2019, an entity has a machinery with the following cost and…

Q: On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and building…

A: Given: Cost of the building on 1 January, 2020  = P 60,000,000  Original useful life of the building…

Q: On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and building…

A: Straight line method is a method of depreciation under same amount is charged as depreciation in…

Q: On January 3, 2018, Tracer Incorporated purchased a patent for $450,000 to manufacture a new type of…

A: Amortization is a process that lowers down the book value of the intangible asset.

Q: VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition,…

A: Initial Recognition of Investment Property  The Investment Property is initially measured at Cost…

Q: The Salient company uses the revaluation model for its building. It acquired a building on January…

A: Revaluation of fixed means to adjust the carrying value of assets with changes in fair market value.

Q: Peach Company purchased a machine for P7, 000, 000 on Jan. 1, 2019 and received a government grant…

A: The process of recording business transactions in the books of accounts for the first time is known…

Q: Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000.…

A: The depreciation expense on the building is calculated as follows: As per the straight-line method…

Q: On December 1, 2019, Joy Corporation decided to dispose of an item of plant that is carried in its…

A: Fair value less cost to sell = Fair value on date of classification as held for sale - Estimated…

Q: The carrying amount of Building C on December 31, 2020 is P8,000,000 and had remaining useful life…

A: Information given in question: Carrying amount of Building C on December 31, 2020 is P8,000,000.…

Q: In January of 2021, the Phillips Company purchased a patent at a cost of $100,000. The company…

A: Cost of patent = $100,000 Useful life = 10 years

Q: Sta Elena Construction & Development Corporation purchased a construction crane on January 1, 2019…

A: Introduction: If carrying value of an asset is more than the recoverable amount then the asset is…

Q: At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $12 million. $9…

A:

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $70,100. The…

A: Introduction: A journal entry is used to record a company that will focus on a company's accounting…

Q: At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $…

A: At beginning of the year 2019, Itlog company acquired property at cost = $2000000 Useful life = 25…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.