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Sorocaba Ltda. sold a building to Banco Janeiro on January 1, 2017, for 224,000 reais...

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Accounting

Sorocaba Ltda. sold a building to Banco Janeiro on January 1, 2017, for 224,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The building had a carrying amount of 183,100 reais and a fair value of 224,000 reais on the date of sale.

Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Required:

a. Prepare journal entries for this sale and leaseback for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP.

I need help with JE # 4

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Journal entry worksheet Record the entry for the gain on sale of building as per IFRS. Note: Enter debits before credits. Credit Date 01/01/2017 Debit 224,000 General Journal Cash .......... Building Gain on sale of building 183,100 40,900 Journal entry worksheet

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