Question
At December 31, 2022, Whispering Winds Corp. reported the following plant assets. Land $ 3,860,000 Buildings $ 28,520,000 Less: Accumulated depreciationbuildings 12,834,000 15,686,000 Equipment 48,380,000
At December 31, 2022, Whispering Winds Corp. reported the following plant assets.
Land | $ 3,860,000 | |||
Buildings | $ 28,520,000 | |||
Less: Accumulated depreciationbuildings | 12,834,000 | 15,686,000 | ||
Equipment | 48,380,000 | |||
Less: Accumulated depreciationequipment | 6,047,500 | 42,332,500 | ||
Total plant assets | $ 61,878,500 |
During 2023, the following selected cash transactions occurred.
Apr. 1 | Purchased land for $ 2,080,000. | |
May 1 | Sold equipment that cost $ 1,170,000 when purchased on January 1, 2016. The equipment was sold for $ 351,000. | |
June 1 | Sold land for $ 1,430,000. The land cost $ 1,009,000. | |
July 1 | Purchased equipment for $ 1,109,000. | |
Dec. 31 | Retired equipment that cost $ 715,000 when purchased on December 31, 2013. No salvage value was received. |
(a)
Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Whispering Winds 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. (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 | |
---|---|---|---|---|
choose a transaction date Apr. 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 Apr. 1May 1June 1July 1Dec. 31 | enter an account title to record depreciation | enter a debit amount | enter a credit amount | |
enter an account title to record depreciation | enter a debit amount | enter a credit amount | ||
(To record depreciation) | ||||
| enter an account title to record sale of equipment on may 1 | enter a debit amount | enter a credit amount | |
enter an account title to record sale of equipment on may 1 | enter a debit amount | enter a credit amount | ||
enter an account title to record sale of equipment on may 1 | enter a debit amount | enter a credit amount | ||
enter an account title to record sale of equipment on may 1 | enter a debit amount | enter a credit amount | ||
(To record sale of equipment) | ||||
choose a transaction date Apr. 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 Apr. 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 Apr. 1May 1June 1July 1Dec. 31 | enter an account title to record depreciation | enter a debit amount | enter a credit amount | |
enter an account title to record depreciation | enter a debit amount | enter a credit amount | ||
(To record depreciation) | ||||
choose a transaction date Apr. 1May 1June 1July 1Dec. 31 | enter an account title to record retirement of equipment | enter a debit amount | enter a credit amount | |
enter an account title to record retirement of equipment | enter a debit amount | enter a credit amount | ||
(To record retirement of equipment) |
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