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Posted on Jul 22, 2024

At December 31, 2022, Culver Corporation reported the following plant assets. Land $3,798,000 Buildings $26,690,000 15,097,050 Less: Accumulated depreciation-buildings 11,592,950 Equipment 50,640,000 Less: Accumulated depreciation

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At December 31, 2022, Culver Corporation reported the following plant assets. Land $3,798,000 Buildings $26,690,000 15,097,050 Less: Accumulated depreciation-buildings 11,592,950 Equipment 50,640,000 Less: Accumulated depreciation equipment 6,330,000 44,310,000 Total plant assets $59,700,950 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,785,200. May 1 Sold equipment that cost $759,600 when purchased on January 1, 2016. The equipment was sold for $215,220. June 1 Sold land for $2,025,600. The land cost $1,266,000. July 1 Purchased equipment for $1,392,600. Dec. 31 Retired equipment that cost $886,200 when purchased on December 31, 2013. No salvage value was received. Date Account Titles and Explanation Debit Credit April 1 Land 2785200 Cash 2785200 May 1 Depreciation Expense 25320 Accumulated Depreciation-Equipment 25320 (To record depreciation on equipment sold) Cash 215220 Accumulated Depreciation Equipment 557040 Equipment 759600 Gain on Disposal of Land 12660 June 1 Cash 2025600 Land 1266000 Gain on Disposal of Land 759600 June 1 Equipment 1392600 Accumulated Depreciation-Equipment 1392600 Accumulated Depreciation-Equipment 1392600 Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment retired) Accumulated Depreciation Equipment 886200 Equipment 886200 e Textbook and Media Solution May 1: Accumulated Depreciation-Equipment = ($759,600 ~ 1/10 x 4/12) = $25,320 Cost $759,600 Accum. depr.-Equipment ($759,600 x 1/10) x 7 + $25,320) (557,040) Book value 202,560 Cash proceeds 215,220 Gain on disposal $ 12,660 Dec. 31 Accumulated Depreciation Equipment = ($886,200 ~ 1/10) = $88,620 Cost $886,200 Accum. depr.-Equipment ($886,200 ~ 1/10 10) (886,200) Book value $0 Record adjusting entries for depreciation for 2023. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record depreciation on buildings.) Dec 31 (To record depreciation on equipment.) e Textbook and Media Solution Accumulated Depreciation-Buildings - ($26,690,000 x 1/40) - $667,250 Accumulated Depreciation-Equipment: $49.994200 x 1/10 $4,899,420 $1.392.600 ~ 1/10 * 6/12 69,630 $4,969,050 ($50,640,000 - $759,600 - $886,200) = $48.994.200 Prepare the plant assets section of Culver's balance sheet at December 31, 2023. (Hint: You may wish to set up T accounts, post beginning balances, a CULVER CORPORATION Partial Balance Sheet e Textbook and Media At December 31, 2022, Culver Corporation reported the following plant assets. Land $3,798,000 Buildings $26,690,000 15,097,050 Less: Accumulated depreciation-buildings 11,592,950 Equipment 50,640,000 Less: Accumulated depreciation equipment 6,330,000 44,310,000 Total plant assets $59,700,950 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,785,200. May 1 Sold equipment that cost $759,600 when purchased on January 1, 2016. The equipment was sold for $215,220. June 1 Sold land for $2,025,600. The land cost $1,266,000. July 1 Purchased equipment for $1,392,600. Dec. 31 Retired equipment that cost $886,200 when purchased on December 31, 2013. No salvage value was received. Date Account Titles and Explanation Debit Credit April 1 Land 2785200 Cash 2785200 May 1 Depreciation Expense 25320 Accumulated Depreciation-Equipment 25320 (To record depreciation on equipment sold) Cash 215220 Accumulated Depreciation Equipment 557040 Equipment 759600 Gain on Disposal of Land 12660 June 1 Cash 2025600 Land 1266000 Gain on Disposal of Land 759600 June 1 Equipment 1392600 Accumulated Depreciation-Equipment 1392600 Accumulated Depreciation-Equipment 1392600 Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment retired) Accumulated Depreciation Equipment 886200 Equipment 886200 e Textbook and Media Solution May 1: Accumulated Depreciation-Equipment = ($759,600 ~ 1/10 x 4/12) = $25,320 Cost $759,600 Accum. depr.-Equipment ($759,600 x 1/10) x 7 + $25,320) (557,040) Book value 202,560 Cash proceeds 215,220 Gain on disposal $ 12,660 Dec. 31 Accumulated Depreciation Equipment = ($886,200 ~ 1/10) = $88,620 Cost $886,200 Accum. depr.-Equipment ($886,200 ~ 1/10 10) (886,200) Book value $0 Record adjusting entries for depreciation for 2023. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record depreciation on buildings.) Dec 31 (To record depreciation on equipment.) e Textbook and Media Solution Accumulated Depreciation-Buildings - ($26,690,000 x 1/40) - $667,250 Accumulated Depreciation-Equipment: $49.994200 x 1/10 $4,899,420 $1.392.600 ~ 1/10 * 6/12 69,630 $4,969,050 ($50,640,000 - $759,600 - $886,200) = $48.994.200 Prepare the plant assets section of Culver's balance sheet at December 31, 2023. (Hint: You may wish to set up T accounts, post beginning balances, a CULVER CORPORATION Partial Balance Sheet e Textbook and Media