At December 31, 2017, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings...

 
 
 
 
 

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At December 31, 2017, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $26,740,000 23,265,675 78,040,000 9,755,000 $ 5,853,000 3,474,325 68,285,000 $77,612,325 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $4,292,200. May 1 Sold equipment that cost $1,170,600 when purchased on January 1, 2011. The equipment was sold for $331,670. June 1 Sold land for $3,121,600. The land cost $1,951,000. July 1 Purchased equipment for $2,146,100. Dec. 31 Retired equipment that cost $1,365,700 when purchased on December 31, 2008. No salvage value was received. Journalize the transactions. Blue uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation April 1 Land May 1 June 1 Cash Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment sold) Cash Accumulated Depreciation-Equipment Gain on Disposal of Plant Assets Equipment Cash Land Loss on Disposal of Land Debit 4292200 39020 331670 858440 3121600 Credit 4292200 39020 19510 1170600 1951000 1170600 July 1 Dec. 31 Equipment Cash Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment retired) Accumulated Depreciation-Equipment Equipment 2146100 136570 1365700 2146100 136570 1365700 Record adjusting entries for depreciation for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31 Depreciation Expense Dec. 31 Accumulated Depreciation-Buildings (To record depreciation on buildings.) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment.) Debit 682850 2048550 Credit 682850 2048550 Prepare the plant assets section of Blue's balance sheet at December 31, 2018. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2018 transactions.) (List Plant Assets in order of Land, Building and Equipment.) Plant Assets Land Buildings Less Accumulated Depreciation-Buildings Equipment Less Accumulated Depreciation-Equipment Total Plant Assets BLUE CORPORATION Partial Balance Sheet December 31, 2018 $ 26740000 23934175 i 77649800 2048550 $ 8194200 2805825 70099430 81099455 At December 31, 2017, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $26,740,000 23,265,675 78,040,000 9,755,000 $ 5,853,000 3,474,325 68,285,000 $77,612,325 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $4,292,200. May 1 Sold equipment that cost $1,170,600 when purchased on January 1, 2011. The equipment was sold for $331,670. June 1 Sold land for $3,121,600. The land cost $1,951,000. July 1 Purchased equipment for $2,146,100. Dec. 31 Retired equipment that cost $1,365,700 when purchased on December 31, 2008. No salvage value was received. Journalize the transactions. Blue uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation April 1 Land May 1 June 1 Cash Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment sold) Cash Accumulated Depreciation-Equipment Gain on Disposal of Plant Assets Equipment Cash Land Loss on Disposal of Land Debit 4292200 39020 331670 858440 3121600 Credit 4292200 39020 19510 1170600 1951000 1170600 July 1 Dec. 31 Equipment Cash Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment retired) Accumulated Depreciation-Equipment Equipment 2146100 136570 1365700 2146100 136570 1365700 Record adjusting entries for depreciation for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31 Depreciation Expense Dec. 31 Accumulated Depreciation-Buildings (To record depreciation on buildings.) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment.) Debit 682850 2048550 Credit 682850 2048550 Prepare the plant assets section of Blue's balance sheet at December 31, 2018. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2018 transactions.) (List Plant Assets in order of Land, Building and Equipment.) Plant Assets Land Buildings Less Accumulated Depreciation-Buildings Equipment Less Accumulated Depreciation-Equipment Total Plant Assets BLUE CORPORATION Partial Balance Sheet December 31, 2018 $ 26740000 23934175 i 77649800 2048550 $ 8194200 2805825 70099430 81099455

Answer rating: 100% (QA)

Date Account Titles Apr01 Land Cash May01 Depreciation ExpenseEquipment Accumulated DepreciationEqu... View the full answer