At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings...

        

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At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $62,950,000 Accumulated depreciation-equipment 53,500,000 Buildings 97,300,000 Equipment 150,350,000 Land 20,550,000 December 31, and it makes adjusting entries annually. The buildings are estimated The company uses straight-line depreciation for buildings and equipment, its year-end 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: Purchased land for $5.00 million. Paid $1.250 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. Apr. 1 May 1 Sold equipment for $210,000 cash. The equipment cost $2.40 million when originally purchased on January 1, 2009. June 1 Sold land for $4.92 million. Received $840,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.40 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. July 1 Purchased equipment for $2.50 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.) Date Account Titles and Explanation Debit Credit (To record depreciation expense) May 1 (To record sale of equipment) June 1 (To record depreciation expense) (To record disposal of equipment) 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.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record depreciation expense for buildings) Dec. 31 (To record depreciation expense for equipment) Dec. 31 (To record interest incurred but not yet paid) Dec. 31 (To record interest accrued but not yet received) 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.) SHERIDAN COMPANY Statement of Financial Position (Partial) :: :: At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $62,950,000 Accumulated depreciation-equipment 53,500,000 Buildings 97,300,000 Equipment 150,350,000 Land 20,550,000 December 31, and it makes adjusting entries annually. The buildings are estimated The company uses straight-line depreciation for buildings and equipment, its year-end 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: Purchased land for $5.00 million. Paid $1.250 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. Apr. 1 May 1 Sold equipment for $210,000 cash. The equipment cost $2.40 million when originally purchased on January 1, 2009. June 1 Sold land for $4.92 million. Received $840,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.40 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. July 1 Purchased equipment for $2.50 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.) Date Account Titles and Explanation Debit Credit (To record depreciation expense) May 1 (To record sale of equipment) June 1 (To record depreciation expense) (To record disposal of equipment) 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.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record depreciation expense for buildings) Dec. 31 (To record depreciation expense for equipment) Dec. 31 (To record interest incurred but not yet paid) Dec. 31 (To record interest accrued but not yet received) 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.) SHERIDAN COMPANY Statement of Financial Position (Partial) :: ::

Answer rating: 100% (QA)

Solution Date Accounts Tiltle Dr Cr 1Apr Land 5000000 Cash 1250000 Notes Payable 3750000 1May Deprec... View the full answer