Valix Finacc vol 1 Problem 19-6

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 19 Problem 19-6

1. Equipment                                                                                       2,700,000

            Accumulated depreciation                                                                               500,000

            Revaluation surplus                                                                                         2,200,000

2. Depreciation (7,500,000 / 10)                                                             750,000

            Accumulated depreciation                                                                              750,000

3. Revaluation surplus (2,200,000 / 10)                                       220,000

            Retained earnings                                                                                             220,000

4. Cash                                                                                                8,000,000

    Accumulated depreciation                                                            2,250,000

            Equipment                                                                                                       9,200,000

            Gain on sale of equipment                                                                             1,050,000

    Revaluation surplus (2,200,000 - 220,000)                             1,980,000

 Retained earnings                                                                                          1,980,000