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Mr UY has just had property P re-valued. Mr UY originally purchased property P for 560,000. It is now worth 780,000.
Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?
Suggested Answer: A
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36 comments · newest first
CH
Chauncey
11 months ago
780,000 credit makes sense for the current value!
ST
Stephaine
11 months ago
Wait, how does it go from 560k to 780k? Sounds off.
JE
Jerlene
11 months ago
I think it should be a debit of 780,000 instead.
VE
Vernice
12 months ago
Definitely a credit of 220,000.
KE
Keneth
12 months ago
Mr UY made a profit of 220,000!
PA
Paris
1 year ago
I’m not entirely clear on the difference between crediting and debiting in this context. I feel like it could be either A or B, but I need to think it through more.
JA
Jacquelyne
1 year ago
This reminds me of a practice question where we had to adjust asset values. I think the increase goes as a debit, so maybe option C?
GA
Gary
1 year ago
I think we might need to record the new value of the property, which could mean a debit of 780,000, but I’m a bit confused about the credit side.
TO
Tomoko
1 year ago
I remember something about revaluation increasing asset value, but I'm not sure if it's a debit or credit.
EM
Emilio
1 year ago
I'm not entirely confident, but I think the answer is B - 220,000 debit. The property value increased, so that increase should be recorded as a debit to the property account.
BE
Ben
1 year ago
I'm pretty sure the answer is D - 780,000 credit. The property is now worth 780,000, so that's the amount that should be recorded in the property account.
IV
Ivan
1 year ago
Okay, let's see. The property was originally purchased for 560,000, and now it's worth 780,000. So the increase in value is 780,000 - 560,000 = 220,000. I believe the correct answer is A - 220,000 credit.
LA
Lashonda
1 year ago
I'm a bit confused on this one. Is the 220,000 increase in value recorded as a credit or a debit? I'll need to think it through carefully.
TA
Taryn
1 year ago
Hmm, this seems straightforward. I think the answer is B - 220,000 debit, since the property value increased by that amount.
VA
Vallie
1 year ago
Hmm, I'm a bit unsure about this one. The question is asking specifically about a workflow, so I'll need to carefully review the descriptions to see which publication covers that.
EL
Ellsworth
1 year ago
I think this is a straightforward question about service inventory management. I'll carefully read through the options and choose the one that best matches the description in the question.
SH
Shawana
1 year ago
What about the serial connection? I vaguely remember it being used in some setups, but it doesn't feel like the best choice here.
SH
Shenika
1 year ago
Option B is the correct answer. The increase in value is recorded as a debit to the property account.
KR
Kris
1 year ago
Option B is the correct answer. The increase in value is recorded as a debit to the property account.
HA
Hannah
1 year ago
B) 220,000 debit
AR
Ariel
1 year ago
A) 220,000 credit
JO
Johnetta
1 year ago
Haha, I bet Mr. UY is feeling pretty good about that 220,000 gain! Time to splurge on a new sports car, am I right?
LE
Leontine
1 year ago
D) 780,000 credit
LA
Latosha
1 year ago
B) 220,000 debit
BR
Brittni
1 year ago
A) 220,000 credit
MA
Mayra
1 year ago
I'm not sure about this one. Shouldn't it be a credit since the property value has increased?
KA
Kattie
1 year ago
D) 780,000 credit
JA
Jacqueline
1 year ago
Yes, you are correct. The increase in property value should be recorded as a credit.
AL
Alberta
1 year ago
A) 220,000 credit
TA
Tammy
1 year ago
Option B looks right to me. We're increasing the value of the property, so it's a debit to the account.
AM
Amalia
1 year ago
Option B looks right to me. We're increasing the value of the property, so it's a debit to the account.
CH
Chery
1 year ago
B) 220,000 debit
JE
Jettie
1 year ago
A) 220,000 credit
JU
Jutta
2 years ago
But wouldn't the increase in property value be recorded as a credit in the account?
JA
Jamal
2 years ago
I disagree, I believe the correct answer is D) 780,000 credit.
JU
Jutta
2 years ago
I think the answer is B) 220,000 debit.