Question: A partial portion of the balance sheet at December 31

A partial portion of the balance sheet at December 31, 2012, for the Gusto Corporation is presented below:
The following transactions occurred during 2013:
• On January 1, retired equipment with a net book value of $2,000. The equipment was purchased for $8,000. No value was received from the retirement.
• On January 1, Gusto sold a building with an original 30-year useful life and no estimated salvage value for $90,000 cash. The building was originally purchased on December 31, 2002 for $120,000.
• Purchased land for $90,000 on April 30.
• On July 1, Gusto purchased equipment for $30,000 by signing a long-term note payable.
• Prepared depreciation entries on December 31. Depreciation expense for the year was $40,000 for buildings and $4,500 for equipment.
a. Prepare journal entries to record all of the above transactions.
b. Prepare the property and equipment portion of Gusto's balance sheet at December 31, 2013.

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  • CreatedJuly 16, 2015
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