Pls do not handwritten for easy reading === ===
Question:-
CC Ltd, a company incorporated in Singapore with Dec 31 year ends,acquired a retail shop on 2 Jan 20x1 for $600,000 with theintention of renting it out. The property is leasehold with 20years remaining on the lease. It has a zero residual value. On 1Jul 20x1, CC Ltd rented out the retails shop to an unrelatedcompany for a monthly rental of $8,000, payable at the end of eachmonth. After 2 yrs, CC Ltd managed to terminate the lease with theexisting tenant on 30 Jun 20x3. CC Ltd used the retail shop for itsown operations from 1 Jul 20x3 onwards.
The market value of CC Ltd's retail shop was determined asfollows:-
31 Dec 20x1: $800,000
31 Dec 20x2: $700,000
1 Jul 20x3 : $740,000
CC Ltd adopts the fair model under FRS 40 Investment Property andadopts the cost model under FRS 16 Property, Plant and equipment.CC Ltd depreciates all its assets on a straight-line whereapplicable.
Required:
Illustrate the accounting for the retail shop by preparing thejournal entries(with journal narratives) to record the variousevents relating to CC Ltd's retail shop from 2 Jan 20x1 to 31 Dec20x3. Please round your answer to the nearest dollar.
