ABC Ltd has the following land and buildings in its financial statements as at 30...
50.1K
Verified Solution
Link Copied!
Question
Accounting
ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022:
Residential land, at cost
2 000 000
Factory land, at valuation 2020
1 800 000
Buildings, at valuation 2020
1 600 000
Accumulated depreciation
(200 000)
At 30 June 2022, the balance of the revaluation surplus is $800 000, of which $600 000 relates to the factory land and $200 000 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are:
Residential land, previously recorded at cost
2 200 000
Factory land, previously revalued in 2020
1 400 000
Buildings, previously revalued in 2020
1 800 000
Required:
Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
