Forest Lake Resort reported the following on its balance sheet at December 31, 2021: 

On July 1, 2022, the resort expanded operations and purchased additional equipment for cash at a cost of $109,000. The company depreciates buildings using the straight-line method over 20 years with residual values of $81,000. Due to expected obsolescence, the equipment has a useful life of only 10 years and is being depreciated using the double-declining-balance method with a residual value of zero.

Requirements

1. Journalize Forest Lake Resort’s plant asset purchase and depreciation transactions for 2022.

2. Report plant assets on the December 31, 2022, balance sheet.

Transcribed Image Text:

Property, plant, and equipment, at cost: Land... Buildings. ********** Less: Accumulated depreciation Equipment...... Less: Accumulated depreciation $ 149,000 706,000 (342,000) 406,000 (269,000)