Question

Problem 7-4 (Part Level Submission)

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:

Apr. 1		Purchased land for $4.60 million. Paid $1.150 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 $340,000 cash. The equipment cost $3.60 million when originally purchased on January 1, 2009.
June 1		Sold land for $4.32 million. Received $660,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.20 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.
July 1		Purchased equipment for $2.40 million cash.
Dec. 31		Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

a) Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (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.)

Answer 1

Provided a table showing complete reconciliation of PPE balance. Please let me know if you need anything else. All amounts in USD