At December 31, 2022, Flint Company reported the following as plant assets. Land $3,770,000 Buildings $27.290.000...

 

 

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At December 31, 2022, Flint Company reported the following as plant assets. Land $3,770,000 Buildings $27.290.000 Less: Accumulated depreciation-buildings 12,170,000 15,120,000 Equipment 48,020,000 Less: Accumulated depreciation-equipment 4,550.000 43,470,000 Total plant assets $62,360,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,190,000. May 1 Sold equipment that cost $900,000 when purchased on January 1, 2019. The equipment was sold for $540,000. June 1 Sold land purchased on June 1, 2013 for $1,540,000. The land cost $394,000. July 1 Purchased equipment for $2,530,000. Dec. 31 Retired equipment that cost $491,000 when purchased on December 31, 2013. } (a) Your answer is correct. SUPPOR Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) (c) Date Account Titles and Explanation Apr. 1 Land Cash May 1 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) May 1 Cash Debit 2190000 30000 540000 Accumulated Depreciation-Equipment 390000 Equipment Gain on Disposal of Plant Assets (To record sale of equipment) June 1 Cash Gain on Disposal of Plant Assets Land July 1 Equipment Cash Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) Dec. 31 Accumulated Depreciation-Equipment Equipment (To record retirement of equipment) eTextbook and Media List of Accounts Your answer is correct. 1540000 2530000 49100 491000 Credit 2190000 30000 900000 30000 1146000 394000 2530000 49100 491000 Attempts: 3 of 5 used Record adjusting entries for depreciation for 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 Debit 545800 Accumulated Depreciation-Buildings (To record building depreciation) Dec. 31 Depreciation Expense 4789400 Accumulated Depreciation-Equipment (To record equipment deprecition) eTextbook and Media List of Accounts Your answer is partially correct. Credit 545800 4789400 Prepare the plant assets section of Flint's balance sheet at December 31, 2023. (List Plant Assets in order of Land, Buildings and Equipment.) Property Plant and Equipment Land Buildings Less : Accumulated Depreciation-Buildings Equipment Less : Accumulated Depreciation-Equipment Total Intangible Assets Flint Company Balance Sheet (Partial) December 31, 2023 $ 27290000 $ 5566000 12715800 i 14574200 49159000 8537500 i 40621500 $ 60761700 Attempts: 2 of 5 used Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property Plant and Equipment Owner's Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property Plant and Equipment Total Owner's Equity Total Intangible Assets The intangible assets section of Whispering Winds Company at December 31, 2022, is presented here. Patents ($60,000 cost less $6,000 amortization) Franchises ($35,000 cost less $14,000 amortization) $54,000 21,000 Total $75,000 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Paid $18,000 legal costs to successfully defend the patent against infringement by another company. Sept. Paid $45,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. 1 Oct. 1 Nov.- Dec. Acquired a franchise for $110,000. The franchise has a useful life of 50 years. Developed a new product, incurring $130,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. (a) Your answer is correct. SUPPOR Prepare journal entries to record the transactions above. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Date Jan. 2 Sept. 1 Account Titles and Explanation Patents Cash Advertising Expense Cash Oct. 1 Franchises Cash Debit 18000 45000 110000 Nov.-Dec. Research and Development Expense 130000 Cash eTextbook and Media List of Accounts Your answer is partially correct. Credit 18000 45000 110000 130000 Attempts: 1 of 5 used Prepare journal entries to record the 2023 amortization expense for intangible assets. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 Dec. 31 Amortization Expense Patents (To record patents amortization) Amortization Expense Franchises (To record franchise amortization) Debit 8000 4250 Credit 8000 4250 At December 31, 2022, Flint Company reported the following as plant assets. Land $3,770,000 Buildings $27.290.000 Less: Accumulated depreciation-buildings 12,170,000 15,120,000 Equipment 48,020,000 Less: Accumulated depreciation-equipment 4,550.000 43,470,000 Total plant assets $62,360,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,190,000. May 1 Sold equipment that cost $900,000 when purchased on January 1, 2019. The equipment was sold for $540,000. June 1 Sold land purchased on June 1, 2013 for $1,540,000. The land cost $394,000. July 1 Purchased equipment for $2,530,000. Dec. 31 Retired equipment that cost $491,000 when purchased on December 31, 2013. } (a) Your answer is correct. SUPPOR Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) (c) Date Account Titles and Explanation Apr. 1 Land Cash May 1 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) May 1 Cash Debit 2190000 30000 540000 Accumulated Depreciation-Equipment 390000 Equipment Gain on Disposal of Plant Assets (To record sale of equipment) June 1 Cash Gain on Disposal of Plant Assets Land July 1 Equipment Cash Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) Dec. 31 Accumulated Depreciation-Equipment Equipment (To record retirement of equipment) eTextbook and Media List of Accounts Your answer is correct. 1540000 2530000 49100 491000 Credit 2190000 30000 900000 30000 1146000 394000 2530000 49100 491000 Attempts: 3 of 5 used Record adjusting entries for depreciation for 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 Debit 545800 Accumulated Depreciation-Buildings (To record building depreciation) Dec. 31 Depreciation Expense 4789400 Accumulated Depreciation-Equipment (To record equipment deprecition) eTextbook and Media List of Accounts Your answer is partially correct. Credit 545800 4789400 Prepare the plant assets section of Flint's balance sheet at December 31, 2023. (List Plant Assets in order of Land, Buildings and Equipment.) Property Plant and Equipment Land Buildings Less : Accumulated Depreciation-Buildings Equipment Less : Accumulated Depreciation-Equipment Total Intangible Assets Flint Company Balance Sheet (Partial) December 31, 2023 $ 27290000 $ 5566000 12715800 i 14574200 49159000 8537500 i 40621500 $ 60761700 Attempts: 2 of 5 used Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property Plant and Equipment Owner's Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property Plant and Equipment Total Owner's Equity Total Intangible Assets The intangible assets section of Whispering Winds Company at December 31, 2022, is presented here. Patents ($60,000 cost less $6,000 amortization) Franchises ($35,000 cost less $14,000 amortization) $54,000 21,000 Total $75,000 The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Paid $18,000 legal costs to successfully defend the patent against infringement by another company. Sept. Paid $45,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The commercials aired in September and October. 1 Oct. 1 Nov.- Dec. Acquired a franchise for $110,000. The franchise has a useful life of 50 years. Developed a new product, incurring $130,000 in research and development costs during December. A patent was granted for the product on January 1, 2024. (a) Your answer is correct. SUPPOR Prepare journal entries to record the transactions above. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Date Jan. 2 Sept. 1 Account Titles and Explanation Patents Cash Advertising Expense Cash Oct. 1 Franchises Cash Debit 18000 45000 110000 Nov.-Dec. Research and Development Expense 130000 Cash eTextbook and Media List of Accounts Your answer is partially correct. Credit 18000 45000 110000 130000 Attempts: 1 of 5 used Prepare journal entries to record the 2023 amortization expense for intangible assets. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 Dec. 31 Amortization Expense Patents (To record patents amortization) Amortization Expense Franchises (To record franchise amortization) Debit 8000 4250 Credit 8000 4250