Problem 9-2A At December 31, 2017, Bridgeport Corporation reported the following

Question

Problem 9-2A At December 31, 2017, Bridgeport Corporation reported the following plant assets. $ 5,673,000 Land Buildings Less: Accumulated depreciat buildings Equipment Less: Accumulated depreciat equipment Total plant assets $26,540,000 22,550,175 75,640,000 ion- 3,989,825 ion- 9,455,000 66,185,000 $75,847,825 During 2018, the following selected cash transactions occurred Apr. Purchased land for $4,160,200 May 1 Sold equipment that cost $1,134,600 when purchased on January 1, 2011. The equipment was sold for $321,470 June 1 Sold land for $3,025,600. The land cost $1,891,000 July Purchased equipment for $2,080,100 Dec. 31 Retired equipment that cost $1,323,700 when purchased on December 31, 2008. No salvage value was received ournalize the transactions. Bridgeport uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

Journale entrries

Plant assets account

Date Particulars L.F Amount ($) Amount ($) 2018 Apr-01 land 4,160,200 Cash 4,160,200 (For land purchased) May-01 Cash 321,470 Accumulated dep 832,040 Equipment 1,134,600 gain on sale of equipment 18,910 (For equipment sold) 1,134,600/10 = 113,460 2011-2017 = 113,460*7 2018 = 113,460*4/12 Jun-01 Cash 3,025,600 Gain on sale of land 1,134,600 Land 1,891,000 (for land sold) Jul-01 Equipment 2,080,100 Cash 2,080,100 (For equipment purchased) Dec-31 Accumulated dep (1,323,700/10*10) 1,323,700 Equipment 1,323,700 (For equipment retired) Date Particulars L.F Amount ($) Amount ($) 2018 Dec-31 Depreciation-Building 663,500 Accumulated dep- Building 663,500 (For depreciation on building recorded) 26,540,000/40 Dec-31 Depreciation- Equipment 7,422,175 Accumulated dep- Equipment 7,422,175 (For dep on equipment recorded) (75,640,000-1,134,600-1,323,700) 73,181,700 73,181,700/10 = 7,318,170 2,080,100/10*6/12= 104,005

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