The following is a schedule of property dispositions for Swifty Corp.: SCHEDULE OF PROPERTY DISPOSITIONS Accumulated...

Transcribed Image Text:

The following is a schedule of property dispositions for Swifty Corp.: SCHEDULE OF PROPERTY DISPOSITIONS Accumulated Cost Depreciation Cash Proceeds Fair Market Value Nature of Disposition Land $44,000 $34,000 $34,000 Building 16,400 3,900 Expropriation Demolition Warehouse 76,000 $17,000 81,000 81,000 Destruction by fire Machine 8,500 3,100 1,000 7,800 Trade-in Furniture 11,000 8,550 3,400 Contribution Vehicle 10,000 3,770 3,230 3,230 Sale The following additional information is available: Land On February 15, land that was being held mainly as an investment was expropriated by the city. On March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $38,000. Building On April 2, land and a building were purchased at a total cost of $82,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, which was done in November. Cash proceeds that were received in November were the net proceeds from the building demolition. Warehouse On June 30, the warehouse was destroyed by fire. The warehouse had been purchased on January 2, 2020, and accumulated depreciation of $17,000 had been properly recorded to the date of the fire. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $98,000. Machine On December 26, the machine was exchanged for another machine having a fair market value of $6,800. Cash of $1,000 was also received as part of the deal. The transaction has commercial substance. Furniture On August 15, furniture was contributed to a registered charitable organization. No other contributions were made or pledged during the year. Vehicle On November 3, the vehicle was sold to Jared Dutoit, a shareholder. (a) Prepare the entries to record the transactions. Assume that Swifty follows ASPE. (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 O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not net the expense.) Date Account Titles and Explanation Land February 15 Cash Loss on Expropriation Investment Property March 31 Investment Property June 30 November Cash Building No Entry No Entry Debit Credit 0 November Warehouse June 30 Cash Accumulated Depreciation - Buildings Buildings Gain on Disposal of Building December 27 Buildings Cash Machine December 26 Cash Accumulated Depreciation - Machinery Machinery Machinery Gain on Disposal of Machinery August 15 Furniture Contribution Expense Accumulated Depreciation - Furniture Furniture Gain on Disposal of Furniture Vehicle November 3 Cash Accumulated Depreciation - Vehicles Loss on Disposal of Vehicles Vehicles The following is a schedule of property dispositions for Swifty Corp.: SCHEDULE OF PROPERTY DISPOSITIONS Accumulated Cost Depreciation Cash Proceeds Fair Market Value Nature of Disposition Land $44,000 $34,000 $34,000 Building 16,400 3,900 Expropriation Demolition Warehouse 76,000 $17,000 81,000 81,000 Destruction by fire Machine 8,500 3,100 1,000 7,800 Trade-in Furniture 11,000 8,550 3,400 Contribution Vehicle 10,000 3,770 3,230 3,230 Sale The following additional information is available: Land On February 15, land that was being held mainly as an investment was expropriated by the city. On March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $38,000. Building On April 2, land and a building were purchased at a total cost of $82,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, which was done in November. Cash proceeds that were received in November were the net proceeds from the building demolition. Warehouse On June 30, the warehouse was destroyed by fire. The warehouse had been purchased on January 2, 2020, and accumulated depreciation of $17,000 had been properly recorded to the date of the fire. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $98,000. Machine On December 26, the machine was exchanged for another machine having a fair market value of $6,800. Cash of $1,000 was also received as part of the deal. The transaction has commercial substance. Furniture On August 15, furniture was contributed to a registered charitable organization. No other contributions were made or pledged during the year. Vehicle On November 3, the vehicle was sold to Jared Dutoit, a shareholder. (a) Prepare the entries to record the transactions. Assume that Swifty follows ASPE. (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 O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not net the expense.) Date Account Titles and Explanation Land February 15 Cash Loss on Expropriation Investment Property March 31 Investment Property June 30 November Cash Building No Entry No Entry Debit Credit 0 November Warehouse June 30 Cash Accumulated Depreciation - Buildings Buildings Gain on Disposal of Building December 27 Buildings Cash Machine December 26 Cash Accumulated Depreciation - Machinery Machinery Machinery Gain on Disposal of Machinery August 15 Furniture Contribution Expense Accumulated Depreciation - Furniture Furniture Gain on Disposal of Furniture Vehicle November 3 Cash Accumulated Depreciation - Vehicles Loss on Disposal of Vehicles Vehicles