Rawl Corporation sold a building to a bank at the beginning of2017 at a...

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Accounting

Rawl Corporation sold a building to a bank at the beginning of2017 at a gain of $87,000 and immediately leased the building backfor a period of four years. The lease is accounted for as anoperating lease. The book value of building (net) is $515,000.
Assume that a U.S.–based company is issuing securities toforeign investors who require financial statements prepared inaccordance with IFRS. Thus, adjustments to convert from U.S. GAAPto IFRS must be made. Ignore income taxes.
Required:
Prepare journal entries for this sale and leaseback for theyears ending December 31, 2017, and December 31, 2018, under (1)U.S. GAAP and (2) IFRS.
Prepare the entry(ies) that Rawl would make on the December 31,2017, and December 31, 2018, conversion worksheets to convert U.S.GAAP balances to IFRS.

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ANSWER Prepare journal entries for this sale and leaseback for the years ending December 31 2017 and December 31 2018 under 1 US GAAP and 2 IFRS Journal entries Date Particulars Debit Credit 1 US GAAP Jan 1 See Answer

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In: AccountingRawl Corporation sold a building to a bank at the beginning of2017 at a gain...Rawl Corporation sold a building to a bank at the beginning of2017 at a gain of $87,000 and immediately leased the building backfor a period of four years. The lease is accounted for as anoperating lease. The book value of building (net) is $515,000.Assume that a U.S.–based company is issuing securities toforeign investors who require financial statements prepared inaccordance with IFRS. Thus, adjustments to convert from U.S. GAAPto IFRS must be made. Ignore income taxes.Required:Prepare journal entries for this sale and leaseback for theyears ending December 31, 2017, and December 31, 2018, under (1)U.S. GAAP and (2) IFRS.Prepare the entry(ies) that Rawl would make on the December 31,2017, and December 31, 2018, conversion worksheets to convert U.S.GAAP balances to IFRS.