Question

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 occurred. Purchased land for S4.40 million. Paid $1.100 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. Sold equipment for $320,000 cash. The equipment cost $2.64 million when originally purchased on January 1, 2009 Sold land for $5.74 million. Received $700,000 million cash and accepted a 3-year, 5% note for the balance. The land cost $1.50 million when purchased on June 1, 2011, Interest on the note is due annually each June1 Purchased equipment for $2.70 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received Apr. 1 May 1 June 1 July 1 Dec. 31 Record the above transactions. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit April 1

Answer 1