Current Attempt in Progress At January 1, 2021, Sandhill Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings $65,500,000 53,800,000 99,500,000 Equipment 145.800.000 Land 18,400,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2021, the following selected transactions occurred: Apr. 1 May 1 June 1 Purchased land for $4,010,000. Paid $1,030,000 cash and issued a three-year, 6% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. Sold equipment for $290,000 cash. The equipment cost $2,575,500 when originally purchased on January 1, 2013. Sold land for $3,561,100. Received $936,700 cash and accepted a three-year, 5% note for the balance. The land cost $1,200,000 when purchased on June 1, 2015. Interest on the note is due annually each June 1. Purchased equipment for $2,000,000 cash. Retired equipment that cost $1,100,000 when purchased on January 1, 2012. No proceeds were received. Tested land for impairment and found that its fair value was $18,400,000. July 1 Dec. 31 31 (a) ) Your answer is correct. Record the above transactions. (List all debit entries before credit entries. 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. Round answers to decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Apr. 1 Land 4,010,000 Cash 1,030,000 Mortgage Payable 2980000 May 1 Depreciation Expense 85850 Accumulated Depreciation - Equipment 85850 (To record depreciation expense) May 1 Cash 290000 Accumulated Depreciation - Equipment 2146250 Loss on Disposal 139250 Equipment 2575500 (To record loss/gain on sale of equipment) June 1 Cash 936700 Notes Receivable 2624400 Land 1200000 Gain on Disposal 2361100 (To record loss/gain on sale of land) July 1 Equipment 2000000 Cash 2000000 Dec. 31 Depreciation Expense 110000 Accumulated Depreciation - Equipment |- 110000 (To record depreciation expense) Dec. 31 Accumulated Depreciation - Equipment 1100000 Equipment 1100000 (To record the retirement of equipment) Dec. 31 Impairment Loss 2810000 Land 2810000 (To record impairment loss) July 1 Equipment 2000000 Cash 2000000 Dec. 31 Depreciation Expense 110000 Accumulated Depreciation - Equipment |- 110000 (To record depreciation expense) Dec. 31 Accumulated Depreciation - Equipment 1100000 Equipment 1100000 (To record the retirement of equipment) Dec. 31 Impairment Loss 2810000 Land 2810000 (To record impairment loss) (b) Your answer is partially correct. Record any adjusting entries required at December 31. (List all debit entries before credit entries. 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 Ofor the amounts. Round answers to decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense 14,312,450 Accumulated Depreciation - Equipment 14,312,450 (To record depreciation expense on buildings) Dec. 31 Depreciation Expense 2,487,500 Accumulated Depreciation - Buildings 2.487,500 (To record depreciation expense on equipment) Dec. 31 Interest Expense 134100.00 Interest Payable 134100.00 (To record interest expense) Dec. 31 76545.00 Interest Receivable Interest Income 76545.00 (To record interest income) Attempts: 2 of 2 used Using multiple attempts has impacted your score. 50% score reduction after attempt 1 (c) Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Building and Equipment.) SANDHILL LIMITED Statement of Financial Position (Partial) December 31, 2021 Assets Property. Plant, and Equipment Land $ Buildings $ Less : Accumulated Depreciation - Buildings Equipment Less Accumulated Depreciation - Equipment Total Property. Plant, and Equipment $ $
