At December 31, 2020, Cheyenne Corp reported the following as plant assets Land $ 4,100,000 Buildings $28,400,000 Less Accumulated depreciationbuildings 12,870,000 15,530,000 Equipment 47,910,000 Less Accumulated depreciationequipment 5,360,000 42,550,000 Total plant assets $62,180,000 During 2021, the following selected cash transactions occurred April 1 Purchased land for $2,100,000 May 1 Sold equipment that cost $1,080,000 when purchased on January 1, 2017 The equipment was sold for $648,000 June 1 Sold land purchased on June 1, 2011 for $1,530,000 The land cost $408,000 July 1 Purchased equipment for $2,370,000 Dec 31 Retired equipment that cost $485,000 when purchased on December 31, 2011 The company received no proceeds related to salvage 1 Journalize the above transactions The company uses straight line depreciation for buildings and equipment The buildings are estimated to have a 50 year 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 (Credit account titles are automatically indented when amount is entered Do not indent manually Record journal entries in the order presented in the problem If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) 2 Record adjusting entries for depreciation for 2021 (Credit account titles are automatically indented when amount is entered Do not indent manually Record journal entries in the order presented in the problem If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) 3 Prepare the plant assets section of Cheyennes balance sheet at December 31, 2021 (List Plant Assets in order of Land, Buildings and Equipment )

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Posted on Sep 07, 2024

At December 31, 2020, Cheyenne Corp. reported the following as plant assets.

Land		$ 4,100,000
Buildings	$28,400,000
Less: Accumulated depreciationbuildings	12,870,000	15,530,000
Equipment	47,910,000
Less: Accumulated depreciationequipment	5,360,000	42,550,000
Total plant assets		$62,180,000

During 2021, the following selected cash transactions occurred.

April 1		Purchased land for $2,100,000.
May 1		Sold equipment that cost $1,080,000 when purchased on January 1, 2017. The equipment was sold for $648,000.
June 1		Sold land purchased on June 1, 2011 for $1,530,000. The land cost $408,000.
July 1		Purchased equipment for $2,370,000.
Dec. 31		Retired equipment that cost $485,000 when purchased on December 31, 2011. The company received no proceeds related to salvage 1. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 2. Record adjusting entries for depreciation for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 3. Prepare the plant assets section of Cheyennes balance sheet at December 31, 2021. (List Plant Assets in order of Land, Buildings and Equipment.)