Question
In: Accounting
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 $2,146,100.
Dec. 31 Retired equipment that cost $1,365,700 when purchased on December 31, 2008. No salvage value was received.
Partially correct answer. Your answer is partially correct. Try again.
Journalize the transactions. Blue 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. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when 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
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Land
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4292200
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cash
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4292200
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Depreciation Expense
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39020
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Accumulated Depreciation-Equipment
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39020
(To record depreciation on equipment sold)
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Cash
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331670
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Entry field with correct answer
Accumulated Depreciation-Equipment
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858440
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Equipment
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1170600
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Gain on Disposal of Plant Assets
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19510
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Cash
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3121600
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Land
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1951000
Entry field with incorrect answer now contains modified data
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1170600
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Equipment
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2146100
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Cash
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2146100
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Entry field with correct answer
Depreciation Expense
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136570
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Entry field with correct answer
Accumulated Depreciation-Equipment
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Entry field with correct answer
136570
(To record depreciation on equipment retired)
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Accumulated Depreciation-Equipment
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1365700
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Equipment
Entry field with correct answer
Entry field with correct answer
1365700
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Partially correct answer. Your answer is partially correct. Try again.
Record adjusting entries for depreciation for 2018. (Credit account titles are automatically indented when 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
Dec. 31
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Depreciation Expense
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668500
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Accumulated Depreciation-Buildings
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668500
(To record depreciation on buildings.)
Dec. 31
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Depreciation Expense
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8164930
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Entry field with correct answer
Accumulated Depreciation-Equipment
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Entry field with incorrect answer
8164930
(To record depreciation on equipment.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Partially correct answer. Your answer is partially correct. Try again.
Prepare the plant assets section of Blue’s balance sheet at December 31, 2018. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2018 transactions.) (List Plant Assets in order of Land, Building and Equipment.)
BLUE CORPORATION
Partial Balance Sheet
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Land
$Entry field with correct answer
8194200
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Buildings
$Entry field with correct answer
26740000
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Accumulated Depreciation-Buildings
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22597175
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4142825
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Equipment
Entry field with correct answer
77649800
Entry field with correct answer: Entry field with correct answer
Accumulated Depreciation-Equipment
Entry field with incorrect answer
15748480
Entry field with incorrect answer
61801320
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$Entry field with incorrect answer
74138345
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Solutions
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