Question

In: Accounting

At January 1, 2022, Sandhill Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...

At January 1, 2022, Sandhill Co. reported the following property, plant, and equipment accounts:

Accumulated depreciation—buildings $60,700,000
Accumulated depreciation—equipment 54,600,000
Buildings 97,400,000
Equipment 150,800,000
Land 21,000,000


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 2022, the following selected transactions occurred:

Apr. 1 Purchased land for $5 million. Paid $1 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 $230,000 cash. The equipment cost $4 million when originally purchased on January 1, 2014.
June 1 Sold land for $5 million. Received $900,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1 million when purchased on June 1, 2016. Interest on the note is due annually each June 1.
July 1 Purchased equipment for $2 million cash.
Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.

(a)

Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2022. (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.)

Solutions

Expert Solution

Property, Plant and Equipment
PARTICULARS ORIGINAL COST   DEPRECIATION   NET BOOK VALUE
As at Additions Deletions   As at Upto Additions Deletions   Upto WDV as at
01.01.2022    During the period 31.12.2022 01.01.2022    During the period 31.12.2022 31.12.2022 01.01.2022
Buildings     9,74,00,000       9,74,00,000 6,07,00,000      24,35,000                   -        6,31,35,000 3,42,65,000           3,67,00,000
                    -  
Land     2,10,00,000      50,00,000      50,00,000       2,27,70,000                   -                     -                          -   2,27,70,000           2,10,00,000
                    -  
Equipment 15,08,00,000      20,00,000        2,30,000     15,25,70,000 5,46,00,000 1,51,80,000                   -        6,97,80,000 8,27,90,000           9,62,00,000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

At January 1, 2022, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...
At January 1, 2022, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $61,350,000 Accumulated depreciation—equipment 54,700,000 Buildings 97,200,000 Equipment 150,300,000 Land 20,150,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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 2022, the following selected transactions...
At January 1, 2022, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...
At January 1, 2022, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $61,350,000 Accumulated depreciation—equipment 54,700,000 Buildings 97,200,000 Equipment 150,300,000 Land 20,150,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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 2022, the following selected transactions...
At January 1, 2017, Blossom Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings...
At January 1, 2017, Blossom Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $60,400,000 Accumulated depreciation-equipment 53,500,000 Buildings Equipment Land 97,600,000 150,000,000 21,850,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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...
At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...
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, the following selected transactions occurred:...
At January 1, 2018, Hammersmith Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...
At January 1, 2018, Hammersmith Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $24,200,000 Accumulated depreciation—equipment 30,000,000 Buildings 57,000,000 Equipment 96,000,000 Land 8,000,000 The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year life and no residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the following selected transactions...
Problem 10-01A On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts...
Problem 10-01A On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts Payable $44,600 Sales Taxes Payable 8,700 Unearned Service Revenue 21,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) 14 Paid state treasurer’s department...
Problem 9-4A At January 1, 2017, Oriole Company reported the following property, plant, and equipment accounts:...
Problem 9-4A At January 1, 2017, Oriole Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $62,700,000 Accumulated depreciation—equipment 54,100,000 Buildings 97,400,000 Equipment 150,900,000 Land 23,000,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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...
Problem 7-4 At January 1, 2017, Sunland Company reported the following property, plant, and equipment accounts:...
Problem 7-4 At January 1, 2017, Sunland Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $63,750,000 Accumulated depreciation—equipment 52,750,000 Buildings 97,400,000 Equipment 150,450,000 Land 20,650,000 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, the following selected...
Problem 9-4A At January 1, 2017, Carla Vista Co. reported the following property, plant, and equipment...
Problem 9-4A At January 1, 2017, Carla Vista Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $60,300,000 Accumulated depreciation—equipment 54,700,000 Buildings 97,500,000 Equipment 150,650,000 Land 20,800,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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...
These items are taken from the financial statements of Sandhill Co. at December 31, 2022. Buildings...
These items are taken from the financial statements of Sandhill Co. at December 31, 2022. Buildings $126,960 Accounts receivable 15,120 Prepaid insurance 3,840 Cash 14,208 Equipment 98,880 Land 73,440 Insurance expense 936 Depreciation expense 6,360 Interest expense 3,120 Common stock 72,000 Retained earnings (January 1, 2022) 48,000 Accumulated depreciation—buildings 54,720 Accounts payable 11,400 Notes payable 112,320 Accumulated depreciation—equipment 22,464 Interest payable 4,320 Service revenue 17,640 Prepare a classified balance sheet. Assume that $16,320 of the note payable will be paid...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT