Question

proper steps and explaination is expected

Safety-First Company completed all of its October 31, 2020, adjustments in preparation for preparing its financial statements, which resulted in the following trial balance. Balance $ 12,120 20,700 80,100 38,300 21,800 970 Account Accounts payable Accounts receivable Accumulated depreciation, building Accumulated depreciation, equipment Accumulated depreciation, furniture Allowance for doubtful accounts Building Cash Equipment Expenses, including cost of goods sold Furniture Land Merchandise inventory Note payable Sales Tarifa Sharma, capital Unearned revenues 137,300 11,900 91,100 762, 100 51,050 106,050 35,650 86,250 904, 110 63,380 8,820 Other information: 1. All accounts have normal balances. 2. $27,300 of the note payable balance is due by October 31, 2021. The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule. Asset Land Building Equipment Furniture Recoverable Value $ 137,300 106,500 29,500 16,300 Required: 1. Prepare the entry (entries) to record any impairment losses at October 31, 2020. Assume the company recorded no impairment losses in previous years. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Answer 1

Date	Particulars	Debit($)	Credit($)
31 october 2020	Land a/c	31250
	To gain on impairment a/c		31250
	(being gain on impairment of land)
	Loss on impairment a/c	30800
	To building a/c		30800
	(being loss on impairment of building)
	Loss on impairment a/c	61600
	To equipment a/c		61600
	(being loss on impairment of equipment)
	Loss on impairment a/c	34750
	To furniture a/c		34750
	(being loss on impairment of furniture)