Entity A purchased a property (Land and Building) for $5,000,000on 1 July 2017. Entity...

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Accounting

Entity A purchased a property (Land and Building) for $5,000,000on 1 July 2017. Entity A paid 60% by a cheque on 1 July 2017 andthe balance was settled on 1 August 2017 through a bank transfer.The value of the land was $500,000 and the buildings $4,500,000.The expected useful life of the building is 50 years without anyresidual value.
On 30 June 2019, the property was revalued to $7,562,208 (land$980,208 and buildings $6,582,000).
On 30 June 2021, the property was sold to Entity B for$7,600,000. Entity A received 60% on the same date and the balancewas settled on 1 August 2021.
Entity A opts for annual transfer of the revaluationreserve.
REQUIRED:
According to relevant accounting standards, prepare journalentries to record the transactions of Entity A from 1 July 2017 to1 August 2022.
ACCOUNT NAMES FOR INPUT:
| Machine | Land | Building | Bank | Payable | Receivable |Retained earnings | No entry | Other income |
| Other expense | Interest expense | Interest revenue |Depreciation | Accum. depreciation | Impairment loss |
| Restoration liability | Loss on disposal | Gain on disposal |Revaluation surplus | Revaluation deficit |
ANSWERS:
Journal Entries:
Date Account Name Debit ($) Credit ($) Hints For Items If Necessary
1-Jul-17 Blank 1 Blank 2
Blank 3 Blank 4
Blank 5 Blank 6 An Asset. Judge Dr/Cr side.
Blank 7 Blank 8
1-Aug-17 Blank 9 Blank 10
Blank 11 Blank 12
30-Jun-18 Blank 13 Blank 14
Blank 15 Blank 16
30-Jun-19 Blank 17 Blank 18
Blank 19 Blank 20
30-Jun-19 Blank 21 Blank 22
Blank 23 Blank 24
Blank 25 Blank 26
Blank 27 Blank 28 An Asset. Judge Dr/Cr side.
Blank 29 Blank 30
30-Jun-20 Blank 31 Blank 32
Blank 33 Blank 34
Blank 35 Blank 36
Blank 37 Blank 38
30-Jun-21 Blank 39 Blank 40
Blank 41 Blank 42
Blank 43 Blank 44
Blank 45 Blank 46
30-Jun-21 Blank 47 Blank 48
Blank 49 Blank 50
Blank 51 Blank 52
Blank 53 Blank 54 Judge Dr/Cr side.
Blank 55 Blank 56 P/L item. Judge Dr/Cr side.
Blank 57 Blank 58 Judge Dr/Cr side.
Blank 59 Blank 60
30-Jun-21 Blank 61 Blank 62
Blank 63 Blank 64
1-Aug-21 Blank 65 Blank 66
Blank 67 Blank 68

Answer & Explanation Solved by verified expert

4.1 Ratings (835 Votes)

Journal Entries for given transactions are as follows Date Particulars Debit Credit 1Jul2017 Land 500000 Building 4500000 Bank 500000060 3000000 Payable 2000000 Asset purchased and payment made for 60 of the transaction 1Aug2017 Payable 2000000 Bank 2000000 Balance payment made See Answer

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Transcribed Image Text

In: AccountingEntity A purchased a property (Land and Building) for $5,000,000on 1 July 2017. Entity A...Entity A purchased a property (Land and Building) for $5,000,000on 1 July 2017. Entity A paid 60% by a cheque on 1 July 2017 andthe balance was settled on 1 August 2017 through a bank transfer.The value of the land was $500,000 and the buildings $4,500,000.The expected useful life of the building is 50 years without anyresidual value.On 30 June 2019, the property was revalued to $7,562,208 (land$980,208 and buildings $6,582,000).On 30 June 2021, the property was sold to Entity B for$7,600,000. Entity A received 60% on the same date and the balancewas settled on 1 August 2021.Entity A opts for annual transfer of the revaluationreserve.REQUIRED:According to relevant accounting standards, prepare journalentries to record the transactions of Entity A from 1 July 2017 to1 August 2022.ACCOUNT NAMES FOR INPUT:| Machine | Land | Building | Bank | Payable | Receivable |Retained earnings | No entry | Other income || Other expense | Interest expense | Interest revenue |Depreciation | Accum. depreciation | Impairment loss || Restoration liability | Loss on disposal | Gain on disposal |Revaluation surplus | Revaluation deficit |ANSWERS:Journal Entries:DateAccount NameDebit ($)Credit ($)Hints For Items If Necessary1-Jul-17Blank 1Blank 2Blank 3Blank 4Blank 5Blank 6An Asset. Judge Dr/Cr side.Blank 7Blank 81-Aug-17Blank 9Blank 10Blank 11Blank 1230-Jun-18Blank 13Blank 14Blank 15Blank 1630-Jun-19Blank 17Blank 18Blank 19Blank 2030-Jun-19Blank 21Blank 22Blank 23Blank 24Blank 25Blank 26Blank 27Blank 28An Asset. Judge Dr/Cr side.Blank 29Blank 3030-Jun-20Blank 31Blank 32Blank 33Blank 34Blank 35Blank 36Blank 37Blank 3830-Jun-21Blank 39Blank 40Blank 41Blank 42Blank 43Blank 44Blank 45Blank 4630-Jun-21Blank 47Blank 48Blank 49Blank 50Blank 51Blank 52Blank 53Blank 54Judge Dr/Cr side.Blank 55Blank 56P/L item. Judge Dr/Cr side.Blank 57Blank 58Judge Dr/Cr side.Blank 59Blank 6030-Jun-21Blank 61Blank 62Blank 63Blank 641-Aug-21Blank 65Blank 66Blank 67Blank 68

Date	Account Name	Debit ($)	Credit ($)	Hints For Items If Necessary
1-Jul-17	Blank 1	Blank 2
	Blank 3	Blank 4
	Blank 5	Blank 6		An Asset. Judge Dr/Cr side.
	Blank 7		Blank 8
1-Aug-17	Blank 9	Blank 10
	Blank 11		Blank 12
30-Jun-18	Blank 13	Blank 14
	Blank 15		Blank 16
30-Jun-19	Blank 17	Blank 18
	Blank 19		Blank 20
30-Jun-19	Blank 21	Blank 22
	Blank 23		Blank 24
	Blank 25	Blank 26
	Blank 27	Blank 28		An Asset. Judge Dr/Cr side.
	Blank 29		Blank 30
30-Jun-20	Blank 31	Blank 32
	Blank 33		Blank 34
	Blank 35	Blank 36
	Blank 37		Blank 38
30-Jun-21	Blank 39	Blank 40
	Blank 41		Blank 42
	Blank 43	Blank 44
	Blank 45		Blank 46
30-Jun-21	Blank 47	Blank 48
	Blank 49		Blank 50
	Blank 51	Blank 52
	Blank 53	Blank 54		Judge Dr/Cr side.
	Blank 55	Blank 56		P/L item. Judge Dr/Cr side.
	Blank 57	Blank 58		Judge Dr/Cr side.
	Blank 59		Blank 60
30-Jun-21	Blank 61	Blank 62
	Blank 63		Blank 64
1-Aug-21	Blank 65	Blank 66
	Blank 67		Blank 68