In the journal entry above, an expense has to be recorded to show the loss. And as a contra entry against this, we have to reduce our purchases account (it is purchases for the) or inventory account (for the). In the end of the day the debit to purchases or inventory both mean les...
There are many different types of journal entries. For example, the journal entry for an item that has been sold on credit will record the value of the sale as a debit in the accounts receivable and as a credit in the sales account. If the item has been sold for cash, the journal en...
There are many different types of journal entries. For example, the journal entry for an item that has been sold on credit will record the value of the sale as a debit in the accounts receivable and as a credit in the sales account. If the item has been sold for cash, the journal en...
2:Other fixed asset Zr Tx (zero tax) Enter a value that exists in the GUI/VAT Zero Tax Rate Item Type (75T/ZT) UDC table to specify whether the item is taxed at a zero rate and whether the item passed through customs. Values are: ...
Fixed Asset Dr.$2 million To Revaluation Reserve$2 million Now, assume that a year later, the value of the land drops to $21 million. The journal entry will be: ParticularsDr. AmountCr. Amount Revaluation Reserve Dr.$1 million To Fixed Asset$1 million ...
Work with Batch Control for Journal Entries Work with Basic Journal Entries Enter Journal Entries in Special Formats Work with Other Types of Journal Entries Work with Model Journal Entries Processing Options for Journal Entry Enter Journal Entries with VAT Enter Journal Entries for the Prior Year Re...
In the journal entry, we debit the impairment loss account or expense account and credit in the corresponding asset. For this example, the journal entry would be: Indicators of Impairment These are signs that help companies determine when to impair their assets. It usually happens when the carry...
extend beyond 75 percent of the asset’s useful life or have a present value greater than or equal to 90 percent of the asset’s fair market value. At the initiation of the lease, the lessee records a debit to the Fixed Asset account and a credit to Lease Obligation. Throughout the li...
The fixed asset was put into operation after January 1, 2008. The disposal (sale) operation was performed for the fixed asset. Fewer than five years passed between the date when the fixed asset was put into operation and the disposal date. ...
How do you calculate the maximum amount of reversal of impairment? And how do you record the journal entry for reversal of impairment?Impairment:When the fair market value of the asset is higher than its carrying value, then the asset impair...