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Adjusting entry trouble, not sure what to do At December 31,2025 , Indigo Corporation reported the following plant assets. During 2026, the following selected cash
Adjusting entry trouble, not sure what to do
At December 31,2025 , Indigo Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,929,200. May 1 Sold equipment that cost $1,071,600 when purchased on January 1,2019 . The equipment was sold for $303,620. June 1 Sold land for $2,857,600. The land cost $1,786,000. July 1 Purchased equipment for $1,964,600. Dec. 31 Retired equipment that cost $1,250,200 when purchased on December 31,2016 . No salvage value was received. Date Account Titles and Explanation Debit Credit April 1 Land 3929200 3929200 May 1 Depreciation Expense 35720 Accumulated Depreciation-Equipment (To record depreciation on equipment sold) Cash 303620 Accumulated Depreciation-Equipment 785840 Equipment Gain on Disposal of Plant Assets 107160017860 (To record sale of equipment) June 1 Cash 2857600 Land 1786000 Gain on Disposal of Plant Assets (To record depreciation on equipment retired) (To record disposal of equipment) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings (To record depreciation on buildings) Dec. 31 Depreciation Expense 160740 Accumulated Depreciation-Equipment (To record depreciation on equipment)Step by Step Solution
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