Question

In: Accounting

Problem 9-2A (Part Level Submission) At December 31, 2017, Bridgeport Corporation reported the following plant assets....

Problem 9-2A (Part Level Submission)

At December 31, 2017, Bridgeport Corporation reported the following plant assets.

Land

$ 5,673,000

Buildings

$26,540,000

Less: Accumulated depreciation—buildings

22,550,175

3,989,825

Equipment

75,640,000

Less: Accumulated depreciation—equipment

9,455,000

66,185,000

Total plant assets

$75,847,825


During 2018, the following selected cash transactions occurred.

Apr. 1 Purchased land for $4,160,200.
May 1 Sold equipment that cost $1,134,600 when purchased on January 1, 2011. The equipment was sold for $321,470.
June 1 Sold land for $3,025,600. The land cost $1,891,000.
July 1 Purchased equipment for $2,080,100.
Dec. 31 Retired equipment that cost $1,323,700 when purchased on December 31, 2008. No salvage value was received.

Journalize the transactions. Bridgeport 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.

Solutions

Expert Solution

Journal Entries:
Date Account Titles and Explanations Debit Credit
April. 1 Land $4,160,200
    Cash $4,160,200
(To record the purchase of land by cash)
May. 1 Depreciation Expense ($1,134,600/10 years*4/12 months) $37,820
    Accumulated Depreciation-Equipment $37,820
(To record the depreciation on equipment sold)
Cash $321,470
Accumulated Depreciation-Equipment [($1,134,600/10*7 years) + $37,820] $832,040
    Equipment $1,134,600
    Gain on Disposal of Plant Assets ($321,470 + $832,040 - $1,134,600) $18,910
(To record the sale of equipment for cash at gain)
June. 1, Cash $3,025,600
    Land $1,891,000
    Gain on Disposal of Plant Assets ($3,025,600 - $1,891,000) $1,134,600
(To record the sale of land with gain for cash)
July. 1, Equipment $2,080,100
    Cash $2,080,100
(To record the purchase of equipment for cash)
Dec. 31, Depreciation Expense ($1,323,700/10 years*1 year) $132,370
    Accumulated Depreciation-Equipment $132,370
(To record the depreciation for 2018 on equipment retired)
Accumulated Depreciation-Equipment ($1,323,700/10 years * 10 years) $1,323,700
    Equipment $1,323,700
(To record the retirement of equipment after 10 years of use)
Dec. 31, Depreciation Expense ($26,540,000/40 years) $663,500
    Accumulated Depreciation-Buildings $663,500
(To record the depreciation on buildings for 2018)
Dec. 31, Depreciation Expense ($75,640,000 - $1,134,600 + $2,080,100 - $1,323,700 = $75,261,800/10 years * 1 year) $7,526,180
    Accumulated Depreciation-Equipment $7,526,180
(To record the depreciation on equipment for 2018)

Related Solutions

Problem 9-5A (Part Level Submission) At December 31, 2015, Grand Company reported the following as plant...
Problem 9-5A (Part Level Submission) At December 31, 2015, Grand Company reported the following as plant assets. Land $4,147,000 Buildings $27,842,000 Less: Accumulated depreciation—buildings 10,769,000 17,073,000 Equipment 48,828,000 Less: Accumulated depreciation—equipment 5,126,000 43,702,000 Total plant assets $64,922,000 During 2016, the following selected cash transactions occurred. April 1 Purchased land for $2,195,000. May 1 Sold equipment that cost $786,000 when purchased on January 1, 2012. The equipment was sold for $471,600. June 1 Sold land purchased on June 1, 2006 for...
Problem 9-5A At December 31, 2017, Grand Company reported the following as plant assets. Land $...
Problem 9-5A At December 31, 2017, Grand 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 2018, 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, 2014. The equipment was sold for $540,000. June 1 Sold land purchased on June 1, 2008 for $1,540,000. The...
Find part C At December 31, 2017, Grouper Corporation reported the following plant assets. Land $...
Find part C At December 31, 2017, Grouper Corporation reported the following plant assets. Land $ 3,783,000 Buildings $26,570,000 Less: Accumulated depreciation—buildings 15,037,425 11,532,575 Equipment 50,440,000 Less: Accumulated depreciation—equipment 6,305,000 44,135,000 Total plant assets $59,450,575 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,774,200. May 1 Sold equipment that cost $756,600 when purchased on January 1, 2011. The equipment was sold for $214,370. June 1 Sold land for $2,017,600. The land cost $1,261,000. July 1...
Problem 10-2A (Part Level Submission) Bridgeport Corporation sells rock-climbing products and also operates an indoor climbing...
Problem 10-2A (Part Level Submission) Bridgeport Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Bridgeport had the following transactions related to notes payable. Sept. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Bridgeport uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $20,400, 10%,...
Problem 7-4 (Part Level Submission) At January 1, 2017, Sheridan Company reported the following property, plant,...
Problem 7-4 (Part Level Submission) At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $64,150,000 Accumulated depreciation—equipment 53,500,000 Buildings 97,500,000 Equipment 150,200,000 Land 22,400,000 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,...
At December 31, 2017, Flounder Corporation reported the following plant assets. Land $ 5,883,000 Buildings $26,560,000...
At December 31, 2017, Flounder Corporation reported the following plant assets. Land $ 5,883,000 Buildings $26,560,000 Less: Accumulated depreciation—buildings 23,384,925 3,175,075 Equipment 78,440,000 Less: Accumulated depreciation—equipment 9,805,000 68,635,000 Total plant assets $77,693,075 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $4,314,200. May 1 Sold equipment that cost $1,176,600 when purchased on January 1, 2011. The equipment was sold for $333,370. June 1 Sold land for $3,137,600. The land cost $1,961,000. July 1 Purchased equipment for...
At December 31, 2017, Concord Corporation reported the following plant assets. Land $ 4,068,000 (credit) Buildings...
At December 31, 2017, Concord Corporation reported the following plant assets. Land $ 4,068,000 (credit) Buildings $ 26,680,000 (debit) Less: Accumulated depreciation—buildings 16,170,300 (debit) 10,509,700 (credit) Equipment 54,240,000 (debit) Less: Accumulated depreciation—equipment 6,780,000 (debit) 47,460,000 (credit) Total plant assets $ 62,037,700 (credit) During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $ 2,983,200. May 1 Sold equipment that cost $ 813,600 when purchased on January 1, 2011. The equipment was sold for $ 230,520. June 1...
At December 31, 2017, Blue Corporation reported the following plant assets. Land $ 5,853,000 Buildings $26,740,000...
At December 31, 2017, Blue Corporation reported the following plant assets. Land $ 5,853,000 Buildings $26,740,000 Less: Accumulated depreciation—buildings 23,265,675 3,474,325 Equipment 78,040,000 Less: Accumulated depreciation—equipment 9,755,000 68,285,000 Total plant assets $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...
At December 31, 2017, Flounder Corporation reported the following plant assets. Land $ 5,883,000 Buildings $26,560,000...
At December 31, 2017, Flounder Corporation reported the following plant assets. Land $ 5,883,000 Buildings $26,560,000 Less: Accumulated depreciation—buildings 23,384,925 3,175,075 Equipment 78,440,000 Less: Accumulated depreciation—equipment 9,805,000 68,635,000 Total plant assets $77,693,075 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $4,314,200. May 1 Sold equipment that cost $1,176,600 when purchased on January 1, 2011. The equipment was sold for $333,370. June 1 Sold land for $3,137,600. The land cost $1,961,000. July 1 Purchased equipment for...
At December 31, 2017, Flounder Corporation reported the following plant assets. Land $ 5,883,000 Buildings $26,560,000...
At December 31, 2017, Flounder Corporation reported the following plant assets. Land $ 5,883,000 Buildings $26,560,000 Less: Accumulated depreciation—buildings 23,384,925 3,175,075 Equipment 78,440,000 Less: Accumulated depreciation—equipment 9,805,000 68,635,000 Total plant assets $77,693,075 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $4,314,200. May 1 Sold equipment that cost $1,176,600 when purchased on January 1, 2011. The equipment was sold for $333,370. June 1 Sold land for $3,137,600. The land cost $1,961,000. July 1 Purchased equipment for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT