Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 2as at 1 july 2015, top ltd has an asset

Question 2As at 1 July 2015, Top Ltd has an asset that has a...

80.2K

Verified Solution

Question

Accounting

Question 2

As at 1 July 2015, Top Ltd has an asset that has a cost of$100000 and accumulated depreciation of $20000. Top Ltd decided on1 July 2015 that the asset should be revalued to $120000. Theremaining useful life of the asset is eight years, after which timeit will have no residual value. Top Ltd use straight line method toallocate depreciation for the asset.

Required:

Prepare journal entries to reflect the revaluation of the assetand the subsequent depreciation of the revalued asset using thenet-amount method for the year ended 30 June 2016.

Answer & Explanation Solved by verified expert
4.1 Ratings (531 Votes)
Gain from upward revaluation of an asset is not a realized gain hence it is recorded in statement of profit and loss It should be shown as revaluation surplus under shareholders equity section of    See Answer
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!
Become a Member

Transcribed Image Text

In: AccountingQuestion 2As at 1 July 2015, Top Ltd has an asset that has a cost...Question 2As at 1 July 2015, Top Ltd has an asset that has a cost of$100000 and accumulated depreciation of $20000. Top Ltd decided on1 July 2015 that the asset should be revalued to $120000. Theremaining useful life of the asset is eight years, after which timeit will have no residual value. Top Ltd use straight line method toallocate depreciation for the asset.Required:Prepare journal entries to reflect the revaluation of the assetand the subsequent depreciation of the revalued asset using thenet-amount method for the year ended 30 June 2016.

Other questions asked by students

Q

You were appointed the CFO of a firm with 2 divisions: Div. 1 -- produces regular...

Finance
Q

Which of the following statements about resting membrane potential is TRUE A The resting membrane...

Biology
Q

Electricity Chemicals Internal Combustion Engine 1900 1950 Petro Chemicals Electronics Aviation 1950 1990 1990 present...

Basic Math
Q

A a population shrinks from its initial level of 22,000 at a continuous decay rate...

Basic Math
Q

Fish Weights The data in Table 5 give the average weights of pike for certain...

Statistics
Q

A farmer plans to fence a rectangular grazing area adjacent to an existing fence The...

Calculus
Q

Johnson Foods produces specialty soup sold in jars. The...

Accounting
Q

need help solving 6 a) b) c) d) the answer for b) should...

Accounting
Q

eBook Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited...

Finance
Q

Whitman Company has just completed its first year of operations. The company's absorption costing income...

Accounting
Q

Assume the total cout of auniversity eduration wI'll be p250 000 when your child enters...

Finance
Q

Can you answer this question quickly? A portfolio consists of $16,400...

Finance