Exercise 9-9 (Part Level Submission) Shown below are the T-accounts relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $80. Part of the equipment was sold on the last day of the current year for cash proceeds. cash (a) Dec. 31 Jan. 1 470 Cash Jan. 1 464 Equipment 1,130 Dec. 31 Accumulated Depreciation Equipment Dec. 31 40 Dec. 31 Depreciation Expense (b)| Gain on Disposal of Plant Assets Dec. 31 105 Dec. 31 61 Dec. 31 (a) Your answer is partially correct. Try again. Prepare the journal entries to record purchase of equipment on January 1. (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 o for the amounts.) (a) Your answer is partially correct. Try again. Journalize the transactions. Concord 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. (Record entries in the order displayed in the problem statement. 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 o for the amounts.) Date Account Titles and Explanation Debit Credit April 1 Land 2,983,200 Cash 2,983,200 May 1 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment sold) Cash Accumulated Depreciation-Equipment 596,640 Equipment 813,600 Gain on Disposal of Plant Assets 13,560 June 1 Cash 2,169,600 T Land 1,356,000 Gain on Disposal of Land 813,600 July 1 TEquipment ,491,600 Cash 1,491,600 Dec. 31 v Depreciation Expense 94,920 T 94,920 | Accumulated Depreciation-Equipment (To record depreciation on equipment retired) TAccumulated Depreciation-Equipment 949,200 Equipment 94,920 Click if you would like to Show Work for this question: Open Show Work (b) ir answer is correct. Record adjusting entries for depreciation for 2018. (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 o for the amounts. Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense 667,000 Accumulated Depreciation-Buildings (To record depreciation on buildings.) Dec. 31 nonreciation Chan Depreciation Expense 5.322 ,300 | Accumulated Depreciation-Equipment 15,322,300 (To record depreciation on equipment.) Click if you would like to Show Work for this question: Open Show Work (c) Prepare the plant assets section of Concord's balance sheet at December 31, 2018. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2018 transactions.) (List Plant Assets in order of Land, Building and Equipment.) CONCORD CORPORATION Partial Balance Sheet $ $ Click if you would like to Show Work for this question: Open Show Work
