Adjustments

Question 1

Cost Model: Below Cost

Journal entries + closing entries

Answer 1

DR Impairment Loss (P/L)
CR Accumulated Imapirment (-A)

Closing entry:
DR Profit and Loss (E)
CR Impairment Loss (P/L)

Question 2

Revaluation Model: Above Cost

Journal entries

Answer 2

Increase:
DR PPE: Asset (A)
CR Revaluation Gain (OCI)

Decrease:
DR Impairment Loss (OCI)
CR Accumulated Impairment (-A)

Question 3

Revaluation Model: Below Cost

Journal entries

Answer 3

DR Impairment Loss (P/L)
CR Accumulated Impairment (-A)

Question 4

Revaluation Model:

Closing entries

Answer 4

DR Revaluation Gain (OCI)
CR Revaluation Surplus (E)

DR Revaluation Surplus (E)
CR Revaluation Loss (OCI)

DR Profit and Loss (E)
CR Impairment Loss (P/L)