Question

Brief Exercise 10-19 Skysong Assets Inc., a publicly listed company, has a building with an initial cost of $403,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $99,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $334,400. On January 5, 2021, Skysong sold the building for $329,400 cash. Prepare the journal entries to record the sale of the building after having used 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.) Debit Credit Date Account Titles and Explanation Jan. 5 Cash 329400 Accumulated Depreciation 99000 Buildings 403000 Gain on Disposal of Bui 25400 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the journal entries to record the sale of the building after having used the revaluation model using the asset adjustment method. (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.) Date Account Titles and Explanation Debit Credit Jan. 5 Cash 329400 Loss on Disposal of Buildin

Answer 1

Credit Jan. 5 Asset - Adjustment Method Debit Cash $ 329,400 loss on Disposal of Building 5,000 Buildings 334,400

Proportionate method Debit Cedit $ Jan.s Cash $ 329,400 Accumulated Depreciation 108,900 Loss on Disposal of Buildings 5,000 Buildings 943,300 Calculation Adjustment :- entry of Revaluation Debit $ 40,300 credit Buildings Accumulated Revaluation depreciation 9,900 30,400
hope you liked my answer and if you do don't forget to give a Thumb's up.??