-12 On July 1, 2020, Concord Ltd., a publicly listed company, acquired assets from Riverbed Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,680 Storage warehouse (building #2) 209,880 Machinery (in building #1) 74,700 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment. In exchange for the acquisition of these assets, Concord issued 145,510 common shares. Concord's shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Concord's shares on the Toronto Stock Exchange, 610 shares were sold for $5 per share. At the time of acquisition, both buildings were considered to have an expected remaining useful life of 10 years, the machinery in building #1 was expected to have a remaining useful life of 3 years, and the machinery in building #2 was expected to have a useful life of 9 years. Concord uses straight-line depreciation with no residual values. At December 31, 2020, Concord's fiscal year end, Concord recorded the correct depreciation amounts for the six months that the assets were in use. An independent appraisal concluded that the assets had the following fair values: MacBook Air Question 8 of 9 -12 At December 31, 2020, Concord's fiscal year end, Concord recorded the correct depreciation amounts for the six months that the assets were in use. An independent appraisal concluded that the assets had the following fair values: Manufacturing plant (building #1) $387,600 Storage warehouse (building #2) 178,600 At December 31, 2021, Concord once again retained an independent appraiser and determined that the fair value of the assets was: Manufacturing plant (building #1) $339.780 Storage warehouse (building #2) 160,790 Prepare the journal entries required for 2020 and 2021, assuming that the buildings are accounted for under the revaluation model (using the asset adjustment method), and that the machinery is accounted for under the cost model. (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. Record the amounts for Building #1 and #2 and for Machinery seperately. Do not combine these amounts. Round answers to decimal places, eg. 5,275.) Debit Credit Date Account Titles and Explanation MacBook Air 8 OT 9 -12 E Date Account Titles and Explanation July 1, 2020 Debit Credit Dec. 31, 2020 (To record depreciation on Building #1) Dec. 31, 2020 (To record depreciation on Building #2) Dec. 31, 2020 MacBook Air -12 E (10 record depreciation on Building #2) Dec. 31, 2020 (To record depreciation on Machinery in Building #1) Dec. 31, 2020 (To record depreciation on Machinery in Building #2) Dec 31, 2020 C (To revalue manufacturing plant - (Building #1)) Dec. 31, 2020 Air -12 E (To revalue manufacturing plant - (Building #1)) Dec. 31, 2020 (To revalue storage warehouse - (Building #2)) Date Debit Credit Account Titles and Explanation Dec. 31, 2021 (To record depreciation on Building #1) Dec. 31, 2021 (To record depreciation on Building #2) MacBook Air Question 8 of 9 -12 (To record depreciation on Building #2) Dec. 31, 2021 (To record depreciation on Machinery in Building #1) Dec. 31, 2021 V (To record depreciation on Machinery in Building #2) Dec. 31, 2021 (To revalue manufacturing plant -(Building #1)) Dec 31, 2021 MacBook Air Question 8 of 9 -/ 25 Assume that the asset revaluation surplus for the buildings was prepared based on a class-by-class basis rather than on an individual asset basis as required by IAS 16. Prepare the journal entries for 2020 and 2021 that relate to the buildings. (Ignore the machinery accounts since they are accounted for using the cost model.) (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 for the amounts. Record the amounts for Building #1 and #2 and for Machinery seperately. Do not combine these amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1, 2020 Dec. 31, 2020 MacBook Air Dec. 31, 2020 (To record depreciation on Building #1) Dec. 31, 2020 (To record depreciation on Building #2) Dec. 31, 2020 V (To revalue (Building #1) and (Building #2)) MacBook Air - 2 Date Account Titles and Explanation Dec. 31, 2021 Debit Credit (To record depreciation on Building #1) Dec. 31, 2021 > > (To revalue (Building #1) and (Building #2)) MacBook Air -12 On July 1, 2020, Concord Ltd., a publicly listed company, acquired assets from Riverbed Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,680 Storage warehouse (building #2) 209,880 Machinery (in building #1) 74,700 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment. In exchange for the acquisition of these assets, Concord issued 145,510 common shares. Concord's shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Concord's shares on the Toronto Stock Exchange, 610 shares were sold for $5 per share. At the time of acquisition, both buildings were considered to have an expected remaining useful life of 10 years, the machinery in building #1 was expected to have a remaining useful life of 3 years, and the machinery in building #2 was expected to have a useful life of 9 years. Concord uses straight-line depreciation with no residual values. At December 31, 2020, Concord's fiscal year end, Concord recorded the correct depreciation amounts for the six months that the assets were in use. An independent appraisal concluded that the assets had the following fair values: MacBook Air Question 8 of 9 -12 At December 31, 2020, Concord's fiscal year end, Concord recorded the correct depreciation amounts for the six months that the assets were in use. An independent appraisal concluded that the assets had the following fair values: Manufacturing plant (building #1) $387,600 Storage warehouse (building #2) 178,600 At December 31, 2021, Concord once again retained an independent appraiser and determined that the fair value of the assets was: Manufacturing plant (building #1) $339.780 Storage warehouse (building #2) 160,790 Prepare the journal entries required for 2020 and 2021, assuming that the buildings are accounted for under the revaluation model (using the asset adjustment method), and that the machinery is accounted for under the cost model. (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. Record the amounts for Building #1 and #2 and for Machinery seperately. Do not combine these amounts. Round answers to decimal places, eg. 5,275.) Debit Credit Date Account Titles and Explanation MacBook Air 8 OT 9 -12 E Date Account Titles and Explanation July 1, 2020 Debit Credit Dec. 31, 2020 (To record depreciation on Building #1) Dec. 31, 2020 (To record depreciation on Building #2) Dec. 31, 2020 MacBook Air -12 E (10 record depreciation on Building #2) Dec. 31, 2020 (To record depreciation on Machinery in Building #1) Dec. 31, 2020 (To record depreciation on Machinery in Building #2) Dec 31, 2020 C (To revalue manufacturing plant - (Building #1)) Dec. 31, 2020 Air -12 E (To revalue manufacturing plant - (Building #1)) Dec. 31, 2020 (To revalue storage warehouse - (Building #2)) Date Debit Credit Account Titles and Explanation Dec. 31, 2021 (To record depreciation on Building #1) Dec. 31, 2021 (To record depreciation on Building #2) MacBook Air Question 8 of 9 -12 (To record depreciation on Building #2) Dec. 31, 2021 (To record depreciation on Machinery in Building #1) Dec. 31, 2021 V (To record depreciation on Machinery in Building #2) Dec. 31, 2021 (To revalue manufacturing plant -(Building #1)) Dec 31, 2021 MacBook Air Question 8 of 9 -/ 25 Assume that the asset revaluation surplus for the buildings was prepared based on a class-by-class basis rather than on an individual asset basis as required by IAS 16. Prepare the journal entries for 2020 and 2021 that relate to the buildings. (Ignore the machinery accounts since they are accounted for using the cost model.) (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 for the amounts. Record the amounts for Building #1 and #2 and for Machinery seperately. Do not combine these amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1, 2020 Dec. 31, 2020 MacBook Air Dec. 31, 2020 (To record depreciation on Building #1) Dec. 31, 2020 (To record depreciation on Building #2) Dec. 31, 2020 V (To revalue (Building #1) and (Building #2)) MacBook Air - 2 Date Account Titles and Explanation Dec. 31, 2021 Debit Credit (To record depreciation on Building #1) Dec. 31, 2021 > > (To revalue (Building #1) and (Building #2)) MacBook Air