On 30 June 2022, the statement of financial position of Brimbank City Council showed the following non-current assets.             Buildings (at cost)                                  $ 225 000             Accumulated Depreciation                         (45 000)         180 000             Commercial Land (at cost)                                             1 920 000                                                At 30 June 2022 Brimbank City Council decides to adopt the revaluation model for both these assets. On this date commercial land has a fair value of $1 800 000 and building has a fair value of $150 000 and useful re-estimated to 15 years. On 30 June 2023 Brimbank City Council reviews the value of its assets. The fair value of commercial land is reassessed as $1860 000. Building has no change in value on that date. Prepare the journal entries required to revalue the assets for the year ended 30 June 2023.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On 30 June 2022, the statement of financial position of Brimbank City Council showed the following non-current assets.

            Buildings (at cost)                                  $ 225 000

            Accumulated Depreciation                         (45 000)         180 000

            Commercial Land (at cost)                                             1 920 000                                               

At 30 June 2022 Brimbank City Council decides to adopt the revaluation model for both these assets. On this date commercial land has a fair value of $1 800 000 and building has a fair value of $150 000 and useful re-estimated to 15 years. On 30 June 2023 Brimbank City Council reviews the value of its assets. The fair value of commercial land is reassessed as $1860 000. Building has no change in value on that date.

Prepare the journal entries required to revalue the assets for the year ended 30 June 2023.

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