Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At December 31, 2020, Sheffield Company reported the following as plant assets. Land $ 4,110,000 Buildings $28,650,000 Less: Accumulated depreciationbuildings 13,680,000 14,970,000 Equipment 47,920,000 Less:

At December 31, 2020, Sheffield Company reported the following as plant assets.
Land $ 4,110,000
Buildings $28,650,000
Less: Accumulated depreciationbuildings 13,680,000 14,970,000
Equipment 47,920,000
Less: Accumulated depreciationequipment 4,730,000 43,190,000
Total plant assets $62,270,000
During 2021, the following selected cash transactions occurred.
April 1 Purchased land for $2,150,000.
May 1 Sold equipment that cost $870,000 when purchased on January 1, 2017. The equipment was sold for $522,000.
June 1 Sold land purchased on June 1, 2011 for $1,420,000. The land cost $399,000.
July 1 Purchased equipment for $2,530,000.
Dec. 31 Retired equipment that cost $511,000 when purchased on December 31, 2011. The company received no proceeds related to salvage.
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.)

Date

Account Titles and Explanation

Debit

Credit

Apr. 1May 1June 1July 1Dec. 31

Apr. 1May 1June 1July 1Dec. 31

(To record depreciation)

May 1

(To record sale of equipment)

Apr. 1May 1June 1July 1Dec. 31

Apr. 1May 1June 1July 1Dec. 31

Apr. 1May 1June 1July 1Dec. 31

(To record depreciation)

Apr. 1May 1June 1July 1Dec. 31

(To record retirement of equipment)

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.)

Date

Account Titles and Explanation

Debit

Credit

Apr. 1May 1June 1July 1Dec. 31

(To record building depreciation)

Apr. 1May 1June 1July 1Dec. 31

(To record equipment deprecition)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Describe liquid modernity and its pros and cons?

Answered: 1 week ago

Question

What is Ohm's law and also tell about Snell's law?

Answered: 1 week ago