Question

Also the journal Entry to Eliminate depreciation for equipment and adjust its fair value

A partial statement of financial position of Blossom Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $280,000 80,000 $200,000 $125,000 45,000 80,000 Blossom uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Blossom applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2019. On this date, an independent appraiser assessed the fair value of the building to be $160,000 and that of the equipment to be $90,000. (a) Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2019, using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2019 (To eliminate the accumulated depreciation) Dec. 31, 2019 (To adjust the Buildings LLL L . . ... . .. .. .

Answer 1

Journal entries. credits Date Particulars bebith Dec 31 Accumulated depreciation ---. DY 80,000 2019 To Buildings Ale itbeing elimination of acarmulated depreciation] 80,000 Dec 31 2019. 40,000 Revaluation Reserve All ---... DO 40,000 To Buildings alc Tbeing decrease in value of bülding debited to the valuation Reserre] 45,000 Dec 31 Accumulated dep AAC ---... Dy 45,000 2019. To Equipment Alc I thing elimation of accumulated depreciahon] 10,000 Dec 31 Equipment dlc - ---. Or 10,000 2019 TO Revaluation Reserve de tbeing mereare in value of egyespment cudited to Beverluation Reserved