The journal entry to record a revaluation when the asset's price has increased includes a credit to the account Revaluation Surplus.

Question

Quizplus · Accepted Answer

When an asset's price increases and a revaluation is done, the journal entry includes a debit to the asset's account and a credit to the account Revaluation Surplus. This is done to reflect the increase in the asset's value and to show the unrealized gain on the balance sheet.

The Journal Entry to Record a Revaluation When the Asset's