Question

At December 31, 2020, Sheffield Company reported the following as plant assets. Land $ 4,110,000 Buildings $28,650,000 Less: Accumulated depreciation—buildings 13,680,000 14,970,000 Equipment 47,920,000 Less: Accumulated depreciation—equipment 4,730,000 43,190,000     Total plant assets $62,270,000 During 2021, the following selected cash transactions occurred. April 1 Purchased land for $2,150,000. May 1 Sold equipment that cost $870,000 when purchased on January 1, 2017. The equipment was sold for $522,000. June 1 Sold land purchased on June 1, 2011 for $1,420,000. The land cost $399,000. July 1 Purchased equipment for $2,530,000. Dec. 31 Retired equipment that cost $511,000 when purchased on December 31, 2011. The company received no proceeds related to salvage.

Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1May 1June 1July 1Dec. 31 Apr. 1May 1June 1July 1Dec. 31 (To record depreciation) May 1 (To record sale of equipment) Apr. 1May 1June 1July 1Dec. 31 Apr. 1May 1June 1July 1Dec. 31 Apr. 1May 1June 1July 1Dec. 31 (To record depreciation) Apr. 1May 1June 1July 1Dec. 31 (To record retirement of equipment)

Record adjusting entries for depreciation for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1May 1June 1July 1Dec. 31 (To record building depreciation) Apr. 1May 1June 1July 1Dec. 31 (To record equipment deprecition)

Answer 1

Dear Student,

Please find the Journal Entries, picture attached.

Thanks