Please answer the required part which is to prepare all indicated journal entries for 2020 and 2021. Please put the computations if needed. Thank you Problem 30-4 (AICPA Adapted), Cognac Company reported an impairment loss of P2,000,000 inthe income statement for the year ended December 31, 2020This loss was related to long-lived asset acquired on January 12019 with cost of P10,000,000, useful life of 10 years and no,residual value.On December 31, 2020, the entity reported the long-lived assetat P6,000,000 which is the fair value less cost of disposal onsuch date.On December 31, 2021, the entity determined that the fair valueless cost of disposal of the impaired long-lived asset hadincreased to P7,500,000. The straight line depreciation isrecorded for the impaired asset.Required:Prepare all indicated journal entries for 2020 and 2021.

The question is related to Impairment of Assets. Required Journal Entries for 2020 and 2021.

Problem 30-4 (AICPA Adapted) Cognac Company reported an impairment loss of P2,000,000 in the income statement for the year ended December 31, 2020 This loss was related to long-lived asset acquired on 2019 with cost of P10,000,000, useful life of 10 years and no January 1, residual value. On December 31, 2020, the entity reported the long-lived asset at P6,000,000 which is the fair value less cost of disposal on such date. On December 31, 2021, the entity determined that the fair value less cost of disposal of the impaired long-lived asset had increased to P7,500,000. The straight line depreciation is recorded for the impaired asset. Required: Prepare all indicated journal entries for 2020 and 2021.

Problem 30-4 (AICPA Adapted) Cognac Company reported an impairment loss of P2,000,000 in the income statement for the year ended December 31, 2020 This loss was related to long-lived asset acquired on 2019 with cost of P10,000,000, useful life of 10 years and no January 1, residual value. On December 31, 2020, the entity reported the long-lived asset at P6,000,000 which is the fair value less cost of disposal on such date. On December 31, 2021, the entity determined that the fair value less cost of disposal of the impaired long-lived asset had increased to P7,500,000. The straight line depreciation is recorded for the impaired asset. Required: Prepare all indicated journal entries for 2020 and 2021.

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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