Jefferson Sales, Inc., sells electronics and appliances. The excerpts that follow are adapted from Jefferson Sales financial

Jefferson Sales, Inc., sells electronics and appliances. The excerpts that follow are adapted from Jefferson Sales’ financial statements for 2014 and 2013:

Requirements
1. How much was Jefferson Sales’ cost of plant assets at February 28, 2014? How much was the book value of plant assets? Show computations.
2. The financial statements give two evidences that Jefferson Sales purchased plant assets and goodwill during fiscal year 2014. What are they?
3. Prepare T-accounts for Property, Plant, and Equipment; Accumulated Depreciation; and Goodwill. Then fill in the T-accounts with information from the comparative balance sheets and cash flow statements. Label each increase or decrease and give its dollar amount.
4. Prepare the journal entry for the sale of property and equipment in2014.

Transcribed Image Text:

February 28, 2014 2013 Balancc Shct dollars in millions) Asscts Total current asscts Property, plant, and cquipment.5,638 4,9 $7,988 S6,904 Goodwill 657610 Year Endod February 28 2014 2013 Statement of Cash Flows (dollars in millions) Opcrating activitics: Net inconc S1,650 1,480 Noncash items affecting net income: Depreciation 561 559 Gain on sale of property, plant and cquipmen Investing activitics: Additions to property, plant, and equipmen Sale of property, plant and equipment 120