At January 1, 2022, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciationbuildings $61,350,000 Accumulated depreciationequipment 54,700,000 Buildings 97,200,000 Equipment 150,300,000 Land 20,150,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. 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. During 2022, the following selected transactions occurred: Apr. 1 Purchased land for $4.30 million. Paid $1.075 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. May 1 Sold equipment for $210,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2014. June 1 Sold land for $5.04 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.20 million when purchased on June 1, 2016. Interest on the note is due

annually each June 1. July 1 Purchased equipment for $2.00 million cash. Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received. (a) Correct answer iconYour answer is correct. Journalize the above transactions. (Credit account titles are automatically indented when the 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 1 enter an account title Land enter a debit amount 4300000 enter a credit amoun enter an account title Mortgage Payable enter a debit amount enter a credit amoun 3225000 enter an account title Cash enter a debit amount enter a credit amoun 1075000 choose a transaction date May 1 enter an account title to record depreciation expense Depreciation Expense enter a debit amount 110000 enter a credit amoun enter an account title to record depreciation expense Accumulated Depreciation-Equipment enter a debit amount enter a credit amoun 110000 (To record depreciation expense) May 1 enter an account title to record sale of equipment on May 1 Cash enter a debit amount 210000 enter a credit amoun enter an account title to record sale of equipment on May 1 Accumulated Depreciation-Equipment enter a debit amount 2750000 enter a credit amoun enter an account title to record sale of equipment on May 1 Loss on Disposal of Plant Assets enter a debit amount 340000 enter a credit amoun enter an account title to record sale of equipment on May 1 Equipment enter a debit amount enter a credit amoun 3300000 (To record sale of equipment) June 1 enter an account title on June 1 Cash enter a debit amount 750000 enter a credit amoun enter an account title on June 1 Notes Receivable enter a debit amount 4290000 enter a credit amoun enter an account title on June 1 Land enter a debit amount enter a credit amoun 1200000 enter an account title on June 1 Gain on Disposal of Land enter a debit amount enter a credit amoun 3840000 choose a transaction date July 1 enter an account title Equipment enter a debit amount 2000000 enter a credit amoun enter an account title Cash enter a debit amount enter a credit amoun 2000000 choose a transaction date Dec. 31 enter an account title to record depreciation expense Depreciation Expense enter a debit amount 100000 enter a credit amoun enter an account title to record depreciation expense Accumulated Depreciation-Equipment enter a debit amount enter a credit amoun 100000 (To record depreciation expense) choose a transaction date Dec. 31 enter an account title to record disposal of equipment Accumulated Depreciation-Equipment enter a debit amount 1000000 enter a credit amoun enter an account title to record disposal of equipment Equipment enter a debit amount enter a credit amoun 1000000 (To record disposal of equipment) eTextbook and Media List of Accounts Attempts: 5 of 5 used (b) Partially correct answer iconYour answer is partially correct. Record any adjusting entries for depreciation required at December 31. (Credit account titles are automatically indented when the 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 Dec. 31 enter an account title to record depreciation expense for buildings Depreciation Expense enter a debit amount enter a credit amount enter an account title to record depreciation expense for buildings Accumulated Depreciation-Buildings enter a debit amount enter a credit amount (To record depreciation expense for buildings) Dec. 31 enter an account title to record depreciation expense for equipment Depreciation Expense enter a debit amount enter a credit amount enter an account title to record depreciation expense for equipment Accumulated Depreciation-Equipment