Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am to prepare the PPE section of the statement of financial position, please help At January 1, 2018, Blossom Limited reported the following property,

I am to prepare the PPE section of the statement of financial position, please help
image text in transcribed
image text in transcribed
At January 1, 2018, Blossom Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $58,400,000 Accumulated deprecation-equipment 57,900,000 Buildings 90,400,000 Equipment 138,300,000 Land 16,900,000 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 fe and no residual value the equipment is estimated to have a 10-year useful fe and no residual value. During 2018, the following selected transactions occurred: Apr 1 Purchased land for $4,290,000. Paid $1,090,000 cash and issued a three-year, 6% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. May 1 Sold equipment for $320,000 cash. The equipment cost $2,612,100 when originally purchased on January 1, 2010. Dune 1 Soid tand for $3,616,500. Received $845,700 cash and accepted a three-year, 5% note for the balance. The land cost $1,400,000 when purchased on June 1, 2012. Interest on the note is due annually each June 1 July 1 Purchased equipment for $2,200,000 cash. Dec. 31 Retired equipment that cost $1,100,000 when purchased on January 1, 2009. No proceeds were received. 31 Tested and for impairment and found that its recoverable value was $18,900,000. BLOSSOM LIMITED Statement of Financial Position (Partial) Assets Property, Plant, and Equipment Land $ Buildings Less Accumulated Depreciation - Buildings Equipment Less Accumulated Depreciation Equipment Total Property. Plant, and Equipment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

4th Edition

1642210714, 9781642210712

More Books

Students also viewed these Accounting questions

Question

Contrast intrinsic motivation with extrinsic motivation.

Answered: 1 week ago

Question

Which are non projected Teaching aids in advance learning system?

Answered: 1 week ago

Question

Does it highlight your accomplishments rather than your duties?

Answered: 1 week ago

Question

Does it clearly identify what you have done and accomplished?

Answered: 1 week ago

Question

Does it avoid using personal pronouns (such as I and me)?

Answered: 1 week ago