Endblast Productions showed the following selected asset balances on December 31
ID: 2608232 • Letter: E
Question
Endblast Productions showed the following selected asset balances on December 31, 2017:
1Remaining estimated useful life is eight years with a residual value of $20,000; depreciated using the straight-line method to the nearest whole month.
2Total estimated useful life is 10 years with a residual value of $24,000; depreciated using the double-declining-balance method to the nearest whole month.
Required:
Prepare the entries for each of the following. (Round intermediate calculations to the nearest whole dollar.)
1. The land and building were sold on September 27, 2018, for $614,000 cash. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)
1. Record the building depreciation for 2018.
2. Record the sale of land and building.
2. The equipment was sold on November 2, 2018, for $57,900 cash. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)
1. Record the equipment depreciation for 2018.
2. Record the sale of equipment.
Land $ 440,800 Building 570,400 Accumulated depreciation, building1 411,200 Equipment 193,200 Accumulated depreciation, equipment2 84,000Explanation / Answer
workings:
1 Account Debit Credit 1 Depreciation expense building 13,050 Accumulated depreciation building 13,050 2 Accumulated depreciation building 4,24,250 Cash 6,14,000 Land 4,40,800 Building 5,70,400 Gain on sale of land and building 27,050 2 1 Depreciation expense equipment 7,100 Accumulated depreciation equipment 7,100 2 Accumulated depreciation equipment 91,100 Cash 57,900 Land - Equipment 1,93,200 Loss on sale of equipment 44,200 -Related Questions
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