Question
At December 31, 2022, 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, 2022, 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 2023, 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, 2016. 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, 2013. No salvage value was received. |
(a)
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.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
choose a transaction date April 1May 1June 1July 1Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date April 1May 1June 1July 1Dec. 31 | enter an account title To record depreciation on equipment sold | enter a debit amount | enter a credit amount |
enter an account title To record depreciation on equipment sold | enter a debit amount | enter a credit amount | |
(To record depreciation on equipment sold) | |||
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date April 1May 1June 1July 1Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date April 1May 1June 1July 1Dec. 31 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date April 1May 1June 1July 1Dec. 31 | enter an account title to record depreciation on equipment retired | enter a debit amount | enter a credit amount |
enter an account title to record depreciation on equipment retired | enter a debit amount | enter a credit amount | |
(To record depreciation on equipment retired) | |||
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount |
eTextbook and Media
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started