Question: At December 31 2013 Tong Corporation reported these plant assets

At December 31, 2013, Tong Corporation reported these plant assets.

During 2014, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,600,000.
May 1 Sold equipment that cost $750,000 when purchased on January 1, 2009.
The equipment was sold for $367,000.
June 1 Sold land purchased on June 1, 2002, for $2,000,000. The land cost $800,000.
Sept. 1 Purchased equipment for $840,000.
Dec. 31 Retired equipment that cost $470,000 when purchased on December 31,
2004. No salvage value was received.
(a) Journalize the transactions. Tong uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-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.
(b) Record adjusting entries for depreciation for 2014.
(c) Prepare the plant assets section of Tong’s balance sheet at December 31,2014.
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  • CreatedApril 07, 2014
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