Do not give image format The information that follows relates to equipment owned by Waterway Limited at December 31, 2020:CostAccumulated depreciation to dateExpected future net cash flows (undiscounted)Expected future net cash flows (discounted, value in use)Fair valueCosts to sell (costs of disposal)$7,020,000780,0005,460,0004,953,0004,836,00039,000Assume that Waterway will continue to use this asset in the future. As at December 31, 2020, the equipment has a remaining usefullife of four years. Waterway uses the straight-line method of depreciation. Assume that Waterway is a private company that follows ASPE.1.2.3.(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "NoEntry" for the account titles and enter O for the amounts.)No.(1)(2)(3)Prepare the journal entry at December 31, 2020, to record asset impairment, if any.Prepare the journal entry to record depreciation expense for 2021.The equipment's fair value at December 31, 2021 is $5.07 million. Prepare the journal entry, if any, to record theincrease in fair value.No.(1)(2)Date Account Titles and ExplanationDecember31, 2020Show Transcribed Text(3)December31, 2021December31, 2021Repeat the requirements in (a) above assuming that Waterway is a public company that follows IFRS. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accounttitles and enter O for the amounts.)DateDecember31, 2020December31, 2021December31, 2021CAccount Titles and ExplanationDebitCreditDebitCredit

Journal entry records the accounting transactions of a business in a journal book. All the business…

The information that follows relates to equipment owned by Waterway Limited at December 31, 2020: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $7,020,000 780,000 5,460,000 4,953,000 4,836,000 39,000

The information that follows relates to equipment owned by Waterway Limited at December 31, 2020: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) Expected future net cash flows (discounted, value in use) Fair value Costs to sell (costs of disposal) $7,020,000 780,000 5,460,000 4,953,000 4,836,000 39,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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