Sunland Corporation had the following transactions. 1. 2. 3. 4. 5. 6. Sold land (cost $11,400)...

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Sunland Corporation had the following transactions. 1. 2. 3. 4. 5. 6. Sold land (cost $11,400) for $14,400. Issued common stock at par for $20,000. Recorded depreciation on buildings for $16,400. Paid salaries of $8,400. Issued 1,300 shares of $1 par value common stock for equipment worth $10,400. Sold equipment (cost $9,400, accumulated depreciation $6,580) for $1,128. (a) For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Transaction Account Titles and Explanation 1. Cash Land Loss on Disposal of Plant Assets Debit Credit N 3. 4. 5. Cash Common Stock Depreciation Expense Accumulated Depreciation Buildings Salaries and Wages Expense Cash Equipment Common Stock Paid-in Capital in Excess of Par Value-Common Stock Cash Accumulated Depreciation Buildings Loss on Disposal of Plant Assets Equipment For each transaction above, (b) indicate how it would affect the statement of cash flows using the indirect method. (Do not leave any answer field blank. Enter O for amounts. Select "Not Reported" if it is not reported on the statement of cash flows. Select "Not Applicable" if it does not belong to any section.) 1. 2. 3. 4. 5. Cash receipt Gain on disposal of plant assets Cash receipt Depreciation expense Salaries and wages expense Common stock for equipment Cash receipt Loss on disposal of plant assets S > C Sunland Corporation had the following transactions. 1. 2. 3. 4. 5. 6. Sold land (cost $11,400) for $14,400. Issued common stock at par for $20,000. Recorded depreciation on buildings for $16,400. Paid salaries of $8,400. Issued 1,300 shares of $1 par value common stock for equipment worth $10,400. Sold equipment (cost $9,400, accumulated depreciation $6,580) for $1,128. (a) For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Transaction Account Titles and Explanation 1. Cash Land Loss on Disposal of Plant Assets Debit Credit N 3. 4. 5. Cash Common Stock Depreciation Expense Accumulated Depreciation Buildings Salaries and Wages Expense Cash Equipment Common Stock Paid-in Capital in Excess of Par Value-Common Stock Cash Accumulated Depreciation Buildings Loss on Disposal of Plant Assets Equipment For each transaction above, (b) indicate how it would affect the statement of cash flows using the indirect method. (Do not leave any answer field blank. Enter O for amounts. Select "Not Reported" if it is not reported on the statement of cash flows. Select "Not Applicable" if it does not belong to any section.) 1. 2. 3. 4. 5. Cash receipt Gain on disposal of plant assets Cash receipt Depreciation expense Salaries and wages expense Common stock for equipment Cash receipt Loss on disposal of plant assets S > C

Answer rating: 100% (QA)

Answer 1 Sold land cost 11400 for 14400 Cash receipts from sale of land Gai... View the full answer