Question

Question 8 A partial statement of financial position of Cullumber Ltd. on December 31, 2016, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2016): Buildings $312,000 Less: accumulated depreciation 93,000 $219,000 Equipment $134,000 Less: accumulated depreciation 56,000 78,000 Cullumber uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Cullumber applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2016. On this date, an independent appraiser assessed the fair value of the building to be $172,000 and that of the equipment to be $90,000.

(a) Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2016, 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2016 (To adjust depreciation on building.) Dec. 31, 2016 (To adjust Building.) Dec. 31, 2016 (To adjust depreciation on Equipment.) Dec. 31, 2016 (To adjust Equipment.)

Answer 1

a)Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2016, using the asset adjustment method.

Calculation for Revaluation of Building
	$$
Financial position of Cullumber Ltd. on December 31, 2016	$219,000
Less: an independent appraiser assessed the fair value of the building	$172,000
Loss from Revaluation Financial position of Cullumber Ltd. on December 31, 2016 -  an independent appraiser assessed the fair value of the building	$47,000
Calculation for Revaluation of Equipment
	$$
Less: accumulated depreciation	78,000
Less: equipment to be fair value	$90,000.
Gain from Revaluation equipment to be fair value - accumulated depreciation 90000- 78000	$12,000

Here are the necessary journal entries

Date	Account Titles and Explanation	Debit	Credit
Dec.31, 2016	Accumulated Depreciation - Building	$93,000
	Building		$93,000
	To adjust depreciation on building
Dec.31, 2016	Revaluation Loss (Refer Working above)	$47,000
	Building		$47,000
	(To adjust Building)
Dec.31, 2016	Accumulated Depreciation - Equipment	$56,000
	Equipment		$56,000
	(To adjust depreciation on Equipment)
Dec.31, 2016	Equipment	$12,000
	Revaluation Gain (refer working above)		$12,000
	(To adjust Equipment.)

Any doubt comment below i will explain until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....