At December 31, 2012, Rivera Corporation reported the following plant assets. La
ID: 2702749 • Letter: A
Question
At December 31, 2012, Rivera Corporation reported the following plant assets.Land $ 4,545,000 Buildings $27,830,000 Less: Accumulated depreciation At December 31, 2012, Rivera Corporation reported the following plant assets.
Land $ 4,545,000 Buildings $27,830,000 Less: Accumulated depreciation At December 31, 2012, Rivera Corporation reported the following plant assets.
Land $ 4,545,000 Buildings $27,830,000 Less: Accumulated depreciation $ 4,545,000 $27,830,000 At December 31, 2012, Rivera Corporation reported the following plant assets.
Land $ 4,545,000 Buildings $27,830,000 Less: Accumulated depreciation At December 31, 2012, Rivera Corporation reported the following plant assets. During 2013, the following selected cash transactions occurred. Prepare the plant assets section of Rivera's balance sheet at December 31, 2013. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2013 transactions.)
Explanation / Answer
Apr. 1 Purchased land for $3,333,000.
Dr Land $3,333,000.
Cr Cash $3,333,000.
May 1 Sold equipment that cost $909,000 when purchased on January 1, 2006. The equipment was sold for $257,550.
909,000 / 10 = 90,900 annual depreciation
90,900 x 7 = 636,300 depreciation through 2012
90,900 x 4/12 = 30,300 depreciation expense for 2013
Dr Depreciation Expense--Equipment 30,300
Cr Accumulated Depreciation--Equipment 30,300
Dr Cash 257,550
Dr Accumulated Depreciation--Equipment 666,600
Cr Equipment 909,000
Cr Gain on Sale 15,150
June 1 Sold land for $2,424,000. The land cost $1,515,000.
Dr Cash 2,424,000
Cr Land 1,515,000
Cr Gain on Sale 909,000
July 1 Purchased equipment for $1,666,500.
Dr Equipment 1,666,500
Cr Cash 1,666,500
Dec. 31 Retired equipment that cost $1,060,500 when purchased on December 31, 2003. No salvage value was received.
1,060,500 / 10 = 106,050 annual depreciation
Dr Depreciation Expense--Equipment 106,050
Cr Accumulated Depreciation--106,050
The equipment has been held for 10 years, so it is fully depreciated.
Dr Accumulated Depreciation--Equipment 1,060,500
Cr Equipment 1,060,500
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