Land $4,349,000 Buildings $27,266,000 Less: Accumulated depreciation—buildings 1
ID: 2588317 • Letter: L
Question
Land $4,349,000 Buildings $27,266,000 Less: Accumulated depreciation—buildings 10,956,000 16,310,000 Equipment 47,849,000 Less: Accumulated depreciation—equipment 4,874,000 42,975,000 Total plant assets $63,634,000 During 2016, the following selected cash transactions occurred. April 1 Purchased land for $2,172,000. May 1 Sold equipment that cost $867,000 when purchased on January 1, 2012. The equipment was sold for $520,200. June 1 Sold land purchased on June 1, 2006 for $1,526,000. The land cost $408,000. July 1 Purchased equipment for $2,585,000. Dec. 31 Retired equipment that cost $488,000 when purchased on December 31, 2006. No salvage value was received. Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 1 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer May 1 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer (To record depreciation) May 1 Entry field with incorrect answer now contains modified data Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer (To record sale of equipment) June 1 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer July 1 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Dec. 31 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer (To record depreciation) Dec. 31 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer (To record retirement of equipment)
Explanation / Answer
workings:
Date Account Debit Credit Apr.1 Land 2,172,000 Cash 2,172,000 [Purchased land] May.1 Depreciation expense 28,900 Accumulated depreciation—equipment 28,900 [Depreciation till date of sale] May.1 Cash 520,200 Equipment 867,000 Gain on sale of equipment 28,900 [Balance] Accumulated depreciation—equipment 375,700 [Sold equipment] Jun.1 Cash 1,526,000 Land 408,000 Gain on sale of land 1,118,000 [Balance] [sold land] Jul.1 Equipment 2,585,000 Cash 2,585,000 [Equipment purchased] Dec.31 Depreciation expense 48,800 Accumulated depreciation—equipment 48,800 [Depreciation till date of retirement] Accumulated depreciation—equipment 488,000 Equipment 488,000 [Equipment retired]Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.