The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments 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 $4.40 million. Paid $1.100 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 $330,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009.
June 1		Sold land for $4.02 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.
July 1		Purchased equipment for $2.80 million cash.
Dec. 31		Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

> Record the above transactions in the tabular summary from part (a). (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

  

Transcribed Image Text:

At January 1, 2017, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments 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 $4.40 million. Paid $1.100 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 $330,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009. June 1 Sold land for $4.02 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. Purchased equipment for $2.80 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. July 1 Dec. 31 Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Jan. 1 Cash $62,650,000 53,850,000 97,600,000 150,750,000 20,350,000 SHOW LIST OF ACCOUNTS + Notes Rec. + Interest Rec. + C s Land + Assets Buildings - Accum. Depr.- Bldgs. + s Liabilities Equipment - Accum. Depr.- Equip. = Interest Payable + Notes Payable + Common Stock + 5 + c Stockholders' Equity Revenue Retained Earnings Expense Dividend At January 1, 2017, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments 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 $4.40 million. Paid $1.100 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 $330,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009. June 1 Sold land for $4.02 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. Purchased equipment for $2.80 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. July 1 Dec. 31 Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Jan. 1 Cash $62,650,000 53,850,000 97,600,000 150,750,000 20,350,000 SHOW LIST OF ACCOUNTS + Notes Rec. + Interest Rec. + C s Land + Assets Buildings - Accum. Depr.- Bldgs. + s Liabilities Equipment - Accum. Depr.- Equip. = Interest Payable + Notes Payable + Common Stock + 5 + c Stockholders' Equity Revenue Retained Earnings Expense Dividend

Answer rating: 100% (QA)

Ivanhoe Company Date Cash 1Jan 1Apr 1100000 1May 1May 330000 1Jun 750000 3270000 ... View the full answer