Question 1

ABC Ltd has the following land and buildings in its financial statements as of 30 June 2022:

Residential land, at cost                 2,294,013

Factory land, at valuation 2020         2,064,612

Buildings, at valuation 2020         1,835,210

Accumulated depreciation                 -229,401

On 30 June 2022, the balance of the revaluation surplus is $917 6305, of which $688 204 relates to the factory land and $229 401 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values on 30 June 2022 are:

Residential land, previously recorded at cost                 2,523,414

Factory land, previously revalued in 2020                 1,605,809

Buildings, previously revalued in 2020                         2,064,612

Required:

Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies residential land and factory land as different classes of assets.