110,000 Dec. 31 Depreciation Expense Accumulated Depreciation Equipment 110,000 (To record depreciation expense) Accumulated Depreciation Equipment Dec. 31 1,100,000 Equipment 1,100,000 (To record the retirement of equipment) X X (To record impairment loss) Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $67,700,000 Accumulated depreciation-equipment 49,400,000 Buildings 90,500,000 Equipment 145,400,000 Land 20,900,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the following selected transactions occurred: Apr Purchased land for $4,310,000. Paid $1,120,000 cash and issued a three-year, 7% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. 1 Sold equipment for $310,000 cash. The equipment cost $2,602,800 when originally purchased on January 1, 2010. May 1 Sold land for $3,765,000. Received $942,600 cash and accepted a three-year, 5% note for the balance. The land cost $1,400,000 when purchased on June 1, 2012. Interest on the note is due annually each June 1 June 1 July Purchased equipment for $2,200,000 cash. 1 Retired equipment that cost $1,100,000 when purchased on January 1, 2009. No proceeds were received Dec. 31 Tested land for impairment and found that its recoverable value was $20,900,000. 31 Your answer is partially correct. Try again. 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 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Credit Account Titles and Explanation Deblt Date 4.310,000 TApr. 1TLand 1,120,000) TCash 3,190,000 Mortgage Payable May 1Depreciation Expense T86,760 Accumulated Depreciation Equipment 86,760 (To record depreciation experise) ash 310,000 2,169,000 23,800 May 1 TACCumulated Depreciation Equipment Loss on Disposal Tquipment (To record lass/gain on sale of equipment) 12,602,800 942,600 June 1Cash TNotes Receivable 2,822,400 TLand 1,400,000) Gain on Dispsal 2,365,000 (To record lass/gain on sale of land) July 1 Equipment 2,200,000 2,200,000 Cash 10,000 Dec. 31 Depreciation Expense Accumulated Depreciation Equipment 110,000 (To record depreciation expense) 1,100,000 Dec. 31TAccumulated Depreciation Equipment 100,000 TEquipment (To record the retirement af equipment) (To record impairment loss)
