Final answer:
To prepare journal entries for equipment under U.S. GAAP and IFRS, one must record the asset at cost and then depreciate it annually. The conversion worksheet entry at the end of 2024 would adjust the accumulated depreciation and the asset's net book value to reconcile differences between U.S. GAAP and IFRS treatment.
Step-by-step explanation:
Without specific details on the equipment and its cost, useful life, or salvage value, we cannot provide exact journal entries. Generally, under both U.S. GAAP and IFRS, an asset is initially recorded at its cost. Depreciation is then recognized each year to allocate the asset's cost over its useful life.
Under U.S. GAAP, there could be differences in depreciation methods, useful life estimations, or salvage value assumptions when compared to IFRS. For example, IFRS tends to encourage the use of the component approach for depreciation, whereas U.S. GAAP does not require this method.
For the conversion worksheet entries at December 31, 2024, the adjustment would depend on the differences in carrying amounts under U.S. GAAP and IFRS due to the variances in the aforementioned aspects. A common adjustment could involve changing the accumulated depreciation to reflect the different depreciation method or useful life used under IFRS compared to U.S. GAAP.
The requisite entries would typically involve debiting or crediting the accumulated depreciation and adjusting the equipment's net book value, with corresponding entries to retained earnings or an adjustment account to reflect the transition to IFRS.