Prepare journal entries to reflect revaluation of the asset

Assignment Help Accounting Basics
Reference no: EM132839716

Question - An asset having a cost of $200 000 and accumulated depreciation of $40 000 is revalued to $240 000 at the beginning of the year. Depreciation for the year is based on the revalued amount and the remaining useful life of eight years. Shareholders' equity, before adjusting for the above revaluation and subsequent depreciation, is as follows:

Share capital - 600,000

Revaluation surplus - 90,000

Capital profits reserve - 170,000

Retained earnings - 140,000

Total - 1,000,000

Required - Prepare journal entries to reflect the revaluation of the asset and the subsequent depreciation of the revalued asset. Which of the equity accounts would be affected directly or indirectly by the revaluation?

Reference no: EM132839716

Questions Cloud

How much cash after taxes would sandra receive : How much cash after taxes would Sandra receive from her investment in the first year if LAB is organized as either an LLC or a C corporation?
Demonstrate descriptive and prescriptive hr : Explain how a system of inter-related functions/departments work, and demonstrate sound knowledge of HR data, metrics, and analytics.
Discuss importance of exposure to language-rich activities : A child's speech development affects his or her emergent literacy skills. Discuss the importance of exposure to language-rich activities in the early years.
How the understanding of interconnected strategic budgeting : Discuss how the understanding of interconnected strategic budgeting cycles can be beneficial for Coles. Is planning important for Coles?
Prepare journal entries to reflect revaluation of the asset : Prepare journal entries to reflect the revaluation of the asset and the subsequent depreciation of the revalued asset
Describe the historical events and political issues : A formulation of a philosophy of education that synthesizes historical events and political issues into a relevant statement that enables an educational leader.
What are five key control activities a company should follow : What are the 5 key control activities a company should follow to mitigate risks? List em all and probide a brief example ( no more than one sentence
Find the least amount that you can withdraw : After looking at the available balance, you see that you have $25,481.25 in the account. Find the least amount that you can withdraw
What role did internal auditors and external auditors play : What role did internal auditors and external auditors play in uncovering the fraud? Using the Library, locate one article involving WorldCom or Enron.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd