Problem 9-2A WileyPLUS C Secure | https://edugen-vvileyplus.com/edugen/ti/main.u

Question

Problem 9-2A

WileyPLUS C Secure | https://edugen-vvileyplus.com/edugen/ti/main.uni At December 31, 2017, bue Corporation reported the following plant assets 5,853.000 Buildings 26,740,000 23,265,675 3,434,325 78,040,000 Total plant assets Durieg 2015, the tollowing selected cash trasactians Occuered pr Purchaied land for 34,292,200 May Sold equ pment that cost $1,170,000 whem purchased on Januery 1. 2011. The equipment was sold for $331.670 ne Sold land for 53,121,600. The land $1,051,000 uly Purchased equipment for $2.146, 100 Duc. 31 Retired quiment that cost s2,365,700 whn purchased on Dacember 31, 2008. No savage value was rceived. Your answer is partialily correct Try again. our ali e the t 5 ctions Du e uses st eight-sne depreci tion nor bua sngs d equip ent. The bulding are estan ted to hrve 8 40-re r useful "fe and no 5al age value: the equ merk b ? rated to have d 10 year useful ure 8nd no sel ege value. Update de edation on assets dbposed of the time of sale or rutirement. (Record etries in the order displayed in the problem statement Credit account titves are automatically indented when amount is enterned. Do not indent manuaty. Ifno entry is roquired, select "No Entry" for the account titves and enter 0 ror the amounts Date Account Teles and Explanation 8-39 PM O Type here to search ? ^??4/9/2018

Explanation / Answer

Required Journal Entry Date Account Tittle & Explanation Debit Credit 31/12/2018 Depreciation Expense $7,636,600 Accumulated Depreciation- Equipment $7,636,600 To Record Depreciation for 2018 Blue Corporation ( Partial Balancesheet December 31,2018 Plant Asset Land $8,104,200 Building $26,740,000 Less: Accumulated Depreciation $23,934,175 $2,805,825 Equipment $776,498,000 Less: Accumulated Depreciation $15,167,460 $761,330,540 Total Plant Asset $772,240,565 W/N-1: Computation of Land Balance as on 31 Dec 2018 Opening Balance $5,853,000 Add: Purchased Land on Apr1 $4,202,200 Less: Cost of Sold Land on 01June -$1,951,000 Closing Balance of Land $8,104,200 W/N-2: Computation of Accumulated Dep. on Building as on 31 Dec 2018 Opening Balance $23,265,675 Add: Depreciation for 2018 ($26740000/40) $668,500 Closing Bal as on 31. Dec 2018 $23,934,175 W/N-3 Computation of Equipment balance as on 31 Dec 2018 Opening Balance $78,040,000 Less: Cost of Sold Equipment on 01 May $1,170,600 Add: Purchase Equipment on July1 $2,146,100 Less: Equipment Retired On Dec31 $1,365,700 Closing Balance of Equipment $77,649,800 W/N-4: Computation of Accumulated Dep. on Equipment as on 31 Dec 2018 Opening Balance $9,755,000 Depreciation on Equipment recorded for 2018 Depreciation for Equipment Sold 01 May 2018 (1170600/10*4/12) $39,020 Depreciation for Equipment Pur on 1 June2018 ($2146100/10*7/12) $125,190 Depreciation for retring equiment for 2018($1365700/10) $136,570 Depreciation for Other Remaining Building Balance ($73358200/10) $7,335,820 $7,636,600 Less: Acc. Dep. Revrsed on Equipment Sold on 1st May 2018 Accumulated Dep. bal as on 01.01.2018( 1170600/10*7) $819,420 Add; Depreciation Recorded for 2018 (1170600/10*4/12) $39,020 -$858,440 Less: Acc. Dep. Reversed on Equipment Retire on 31 Dec 2018 Accumulated Dep. Bal as on 01.01.2018 ($1365700/10*9) $1,229,130 Depreciation Recorded for 2018($1365700/10) $136,570 -$1,365,700 Closing Balance of Accumulated Dep. as on 31 Dec 2018 $15,167,460

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