Question
In: Accounting
The property, plant, and equipment section of the Jasper Company’s December 31, 2017, balance sheet contained...
The property, plant, and equipment section of the Jasper Company’s December 31, 2017, balance sheet contained the following:
| Property, plant, and equipment: | ||||||
| Land | $ | 122,000 | ||||
| Building | $ | 1,092,000 | ||||
| Less: Accumulated depreciation | (210,000 | ) | 882,000 | |||
| Equipment | 178,600 | |||||
| Less: Accumulated depreciation | ? | ? | ||||
| Total property, plant, and equipment | ? | |||||
The land and building were purchased at the beginning of 2013.
Straight-line depreciation is used and a residual value of $42,000
for the building is anticipated.
The equipment is comprised of the following three
machines:
| Machine | Cost | Date Acquired | Residual Value | Life in Years | ||||||||
| 101 | $ | 59,200 | 1/1/15 | $ | 7,200 | 8 | ||||||
| 102 | 91,000 | 6/30/16 | 8,200 | 9 | ||||||||
| 103 | 28,400 | 9/1/17 | 3,200 | 8 | ||||||||
The straight-line method is used to determine depreciation on the
equipment. On March 31, 2018, Machine 102 was sold for $63,000.
Early in 2018, the useful life of machine 101 was revised to five
years in total, and the residual value was revised to zero.
Required:
1. Calculate the accumulated depreciation on
the equipment at December 31, 2017.
2. Prepare the journal entry to record 2018
depreciation on machine 102 up to the date of sale.
3. Prepare a schedule to calculate the gain or
loss on the sale of machine 102.
4. Prepare the journal entry for the sale of
machine 102.
5. Prepare the 2018 year-end journal entries to
record depreciation on the building and equipment.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The property, plant, and equipment section of the Jasper Company’s December 31, 2017, balance sheet contained...
The property, plant, and equipment section of the Jasper
Company’s December 31, 2017, balance sheet contained the
following:
Property, plant, and
equipment:
Land
$
120,000
Building
$
840,000
Less: Accumulated
depreciation
(200,000
)
640,000
Equipment
180,000
Less: Accumulated
depreciation
?
?
Total property, plant, and
equipment
?
The land and building were purchased at the beginning of 2013.
Straight-line depreciation is used and a residual value of $40,000
for the building is anticipated.
The equipment is comprised of the following...
The property, plant, and equipment section of the Jasper Company’s December 31, 2017, balance sheet contained...
The property, plant, and equipment section of the Jasper
Company’s December 31, 2017, balance sheet contained the
following:
Property, plant, and
equipment:
Land
$
130,000
Building
$
800,000
Less: Accumulated
depreciation
(250,000
)
550,000
Equipment
186,900
Less: Accumulated
depreciation
?
?
Total property, plant, and
equipment
?
The land and building were purchased at the beginning of 2013.
Straight-line depreciation is used and a residual value of $50,000
for the building is anticipated.
The equipment is comprised of the following...
The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained...
The property, plant,
and equipment section of the Jasper Company’s December 31, 2020,
balance sheet contained the following:
Property, plant, and equipment:
Land
$
111,000
Building
$
496,000
Less:
Accumulated depreciation
(155,000
)
341,000
Equipment
138,450
Less:
Accumulated depreciation
?
?
Total property,
plant, and equipment
?
The land and building were purchased at the beginning of 2016.
Straight-line depreciation is used and a residual value of $31,000
for the building is anticipated.
The equipment is comprised of the following...
The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained...
The property, plant, and equipment section of the Jasper
Company’s December 31, 2020, balance sheet contained the
following:
Property, plant, and equipment:
Land
$
111,000
Building
$
496,000
Less: Accumulated depreciation
(155,000
)
341,000
Equipment
138,450
Less: Accumulated depreciation
?
?
Total property, plant, and equipment
?
The land and building were purchased at the beginning of 2016.
Straight-line depreciation is used and a residual value of $31,000
for the building is anticipated.
The equipment is comprised of the following...
The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained...
The property, plant, and equipment section of the Jasper
Company’s December 31, 2020, balance sheet contained the
following:
Property, plant, and equipment:
Land
$
111,000
Building
$
496,000
Less: Accumulated depreciation
(155,000
)
341,000
Equipment
138,450
Less: Accumulated depreciation
?
?
Total property, plant, and equipment
?
The land and building were purchased at the beginning of 2016.
Straight-line depreciation is used and a residual value of $31,000
for the building is anticipated.
The equipment is comprised of the following...
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Novak...
At December 31, 2019, certain accounts included in the property,
plant, and equipment section of Novak Company’s balance sheet had
the following balances.
Land
$234,400
Buildings
894,700
Leasehold improvements
662,800
Equipment
881,800
During 2020, the following transactions occurred.
1.
Land site number 621 was acquired for $852,200. In addition, to
acquire the land Novak paid a $54,100 commission to a real estate
agent. Costs of $40,800 were incurred to clear the land. During the
course of clearing the land, timber...
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Marigold...
At December 31, 2019, certain accounts included in the property,
plant, and equipment section of Marigold Corporation’s statement of
financial position had the following balances:
Land
$309,540
Buildings—Structure
882,850
Leasehold Improvements
705,000
Equipment
844,630
During 2020, the following transactions occurred:
1.
Land site No. 621 was acquired for
$799,520 plus a fee of $6,900 to the real estate agent for finding
the property. Costs of $33,280 were incurred to clear the land. In
clearing the land, topsoil and gravel were...
At December 31, 2015, certain accounts included in the property, plant, and equipment section of Kevin...
At December 31, 2015, certain accounts included in the property,
plant, and equipment section of Kevin Company’s balance sheet had
the following balances:
Land
...........................................................................
$200,000
Buildings
...........................................................................
$900,000
Leasehold
improvements.....................................................
$600,000
Machinery and
equipment..................................................
$700,000
During 2016, the following transactions occurred:
Land site number 621 was acquired for $1,000,000. Additionally,
to acquire the land, Kevin paid a $60,000 commission to a real
estate agent. Costs of $15,000 were incurred to clear the land.
During the course of clearing the...
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Vaughn...
At December 31, 2016, certain accounts included in the property,
plant, and equipment section of Vaughn Company’s balance sheet had
the following balances.
Land
$230,600
Buildings
897,600
Leasehold improvements
667,200
Equipment
882,700
During 2017, the following transactions occurred.
1. Land site number 621 was acquired for $856,100. In addition,
to acquire the land Vaughn paid a $51,800 commission to a real
estate agent. Costs of $41,500 were incurred to clear the land.
During the course of clearing the land, timber...
At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan...
At December 31, 2013, certain accounts included in the
property, plant, and equipment section of Reagan Company’s balance
sheet had the following balances.
Land
$235,620
Buildings
891,820
Leasehold improvements
660,250
Equipment
883,570
During 2014, the following transactions occurred.
1.
Land site number 621 was acquired for $859,050. In addition, to
acquire the land Reagan paid a $51,100 commission to a real estate
agent. Costs of $36,100 were incurred to clear the land. During the
course of clearing the land, timber...
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