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At December 31, 2017, Blue Corporation reported the following plant assets. Land $ 5,853,000 Buildings $26,740,000 Less: Accumulated depreciationbuildings 23,265,675 3,474,325 Equipment 78,040,000 Less: Accumulated
At December 31, 2017, Blue Corporation reported the following plant assets.
Land | $ 5,853,000 | |||
Buildings | $26,740,000 | |||
Less: Accumulated depreciationbuildings | 23,265,675 | 3,474,325 | ||
Equipment | 78,040,000 | |||
Less: Accumulated depreciationequipment | 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. |
At December 31, 2017, Blue Corporation reported the following plant assets. $5,853,000 Land $26,740,000 Buildings 23,265,675 Less: Accumulated depreciation-buildings 3,474,325 Equipment 78,040,000 Less: Accumulated depreciation-equipment 9,755,000 68,285,000 $77,612,325 Total plant assets During 2018, the following selected cash transactions occurred. Purchased land for $4,292,200. Apr 1 Sold equipment that cost $1,170,600 when purchased on January 1, 2011. The equipment was sold for $331,670. May 1 Sold land for $3,121,600. The land cost $1,95 1,000. June 1 Purchased equipment for $2,146,100. July 1 Retired equipment that cost $1,365,700 when purchased on December 31, 2008. No salvage value was received Dec. 31 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.) Debit Credit Account Titles and Explanation Date April 1 Land 4292200 Cash 4292200 May 1 Depreciation Expense 39020 Accumulated Depreciation-Equipment 39020 (To record depreciation on equipment sold) Cash 331670 Accumulated Depreciation-Equipment 858440 Gain on Disposal of Plant Assets 19510 Equipment 1170600 June 1 Cash 3121600 Land 1951000 Loss on Disposal of Land 1170600 July 1 Equipment 2146100 Cash 2146100 136570 Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment 136570 (To record depreciation on equipment retired) Accumulated Depreciation-Equipment 1365700 Equipment 1365700 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 O for the amounts.) Account Titles and Explanation Debit Credit Date Dec. 31 Depreciation Expense 682850 Accumulated Depreciation-Bui ldings 682850 (To record depreciation on buildings.) Dec, 31 Depreciation Expense 2048550 Accumulated Depreciation-Equipment 2048550 (To record depreciation on equipment.) 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 December 31, 2018 Plant Assets Land 8194200 26740000 Buildings Accumulated Depreciation-Buildings Less 23934175 2805825 Equipment 77649800 70099430 Less Accumulated 20 81099455 Total Plant Assets
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