Chapter 10 Lo 6

* Question 1 The property, plant, and equipment accounts for Sandhill Company held the following opening balances on January 1, 2020 (the fest day of Sandhill's fiscal year) Land $542,000 Equipment 792,000 Accumulated Depreciation - Equipment 144,000 Machinery 459,000 Accumulated Depreciation-- Machinery 162,000 The following transactions took place during 2020 (assume all transactions took place on January 1): a. Sandhill Company paid $18,100 related to the machinery and $7,000 related to the equipment for maintenance to keep the assets in normal working order b. Equipment with an original cost of $39.600 and accumulated depreciation of $31,100 was traded in on some new equipment. The new equipment had a fair value of $52,100, and Sandhal was given a trade in allowance of $4,400 for the old equipment. c. Sandhill Company made an agreement with GRN Ltd. to exchange two similar plots of land. Sandhill's land had an original cost of $542,000 and a fair value of $760,000. GR's land had an original cost of $569,400 and a fair value of $798,800. Sandhill also paid $38,800 in cash to GRN as part of the transaction. The exchange lacks commercial substance. d. Sandhill paid $66,500 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment Prepare the journal entries to record the above transactions on the books of Sandhill Company. (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 for the amounts.) No. Account Titles and Explanation Debit Credit Sana aso para 5,000 in cash to GRN as part of the transaction. The exchange lacks commercial substance. Sandhill paid $66,500 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment. d. Prepare the journal entries to record the above transactions on the books of Sandhill Company. (Crevlit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required Entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debut Credit Question Atte