Sea shores is a property investment company that focuses on buying landing and buildings for purposes for rental and resale purposes. The company currently own the following land and buildings. Use Purchase date Depreciation policy cost Model Fair value on 31 Dec 2020 Braamfontein land Rented to the local municipality 30 June 2019 10 000 000 Fair value 14 000 000 Umhlanga building Consists of 50 apartments 30 apartments are rented to tenants 01 May 2020 20% on cost 20 000 000 Cost 25 000 000 Richards bay building Will be sold on appreciation of the value 30 April 2020 ? 8 400 000 cost 8 400 000 Richards Bay land Occupied by sea shores 1 January 2020 12 000 000 Cost 10 000 000 Pretoria Building Rented to tenants 1 February 2019 20% on cost 8 000 000 Fair value 10 545 800 Required Prepare all the necessary journal entry for the year ended 31 December 2020.
Sea shores is a property investment company that focuses on buying landing and buildings for purposes for rental and resale purposes. The company currently own the following land and buildings.
|
|
Use |
Purchase date |
|
cost |
Model |
Fair value on 31 Dec 2020 |
|
Braamfontein land |
Rented to the local municipality |
30 June 2019 |
|
10 000 000 |
Fair value |
14 000 000 |
|
Umhlanga building |
Consists of 50 apartments 30 apartments are rented to tenants |
01 May 2020 |
20% on cost |
20 000 000 |
Cost |
25 000 000 |
|
Richards bay building |
Will be sold on appreciation of the value |
30 April 2020 |
? |
8 400 000 |
cost |
8 400 000 |
|
Richards Bay land |
Occupied by sea shores |
1 January 2020 |
|
12 000 000 |
Cost |
10 000 000 |
|
Pretoria Building |
Rented to tenants |
1 February 2019 |
20% on cost |
8 000 000 |
Fair value |
10 545 800 |
Required
Prepare all the necessary
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