At January 1, 2017, Youngstown Company reported the following property, plant, and equipment accounts:

Accumulated depreciation ? buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . $62,200,000 Accumulated depreciation ? equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,000,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 97,400,000 Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .150,000,000 Land. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 20,000,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value.

During 2017, the following selected transactions occurred.

Apr. 1 Purchased land for $4.4 million. Paid $1.1 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.

May 1 Sold equipment for $300,000 cash. The equipment cost $2.8 million when originally purchased on January 1, 2009.

June 1 Sold land for $3.6 million. Received $900,000 million cash and accepted a 3-year, 5% note for the balance. The land cost $1.4 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.

July 1 Purchased equipment for $2.2 million cash.

Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Record any adjusting entries required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the property, plant and equipment section of the company's statement of financial position at December 31. (list property, Plant and Equipment in order of Land, Buildings and Equipment.)

Transcribed Image Text:

Date May 1 June 1 Account Titles and Explanation (To record depreciation expense) (To record sale of equipment) (To record depreciation expense) (To record disposal of equipment) Debit Credit Date Account Titles and Explanation Dec. 31 Dec. 31 Dec. 31 Dec. 31 (To record depreciation expense for buildings) (To record depreciation expense for equipment) (To record interest incurred but not yet paid) (To record interest accrued but not yet received) Debit Credit YOUNGSTOWN COMPANY Statement of Financial Position (Partial) DOL 10 III Date May 1 June 1 Account Titles and Explanation (To record depreciation expense) (To record sale of equipment) (To record depreciation expense) (To record disposal of equipment) Debit Credit Date Account Titles and Explanation Dec. 31 Dec. 31 Dec. 31 Dec. 31 (To record depreciation expense for buildings) (To record depreciation expense for equipment) (To record interest incurred but not yet paid) (To record interest accrued but not yet received) Debit Credit YOUNGSTOWN COMPANY Statement of Financial Position (Partial) DOL 10 III

Answer rating: 100% (QA)

Journal Date Account Name Debit Credit 2017 Apr 1 Land 4400000 Cash 1100000 Note payable 3300000 May ... View the full answer