Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help and calculations on the last question(Dec 31 To record equipment depreciation) All the other amounts are correct. Also need help with balance

I need help and calculations on the last question(Dec 31 To record equipment depreciation) All the other amounts are correct. Also need help with balance sheet and how you got the amounts. ty

image text in transcribed At December 31, 2017, Grand Company reported the following as plant assets. Land $ 4,180,000 Buildings $27,310,000 Less: Accumulated depreciationbuildings 12,890,000 Equipment 47,470,000 Less: Accumulated depreciation equipment 14,420,000 4,530,000 42,940,000 Total plant assets $61,540,000 During 2018, the following selected cash transactions occurred. April 1 May 1 June 1 Purchased land for $2,060,000. Sold equipment that cost $1,050,000 when purchased on January 1, 2014. The equipment was sold for $630,000. Sold land purchased on June 1, 2008 for $1,520,000. The land cost $400,000. July 1 Dec. 31 Purchased equipment for $2,540,000. Retired equipment that cost $494,000 when purchased on December 31, 2008. No salvage value was received. Don't show me this message again for the assignment Your answer is correct. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Apr. 1 Land Debit 206000 0 206000 0 Cash May 1 Depreciation Expense 35000 Accumulated DepreciationEquipment 35000 (To record depreciation) May 1 cash Accumulated DepreciationEquipment Credit 630000 455000 105000 0 Equipment Gain on Disposal of Plant Assets 35000 (To record sale of equipment) June 1 Cash 152000 0 112000 0 Gain on Disposal of Plant Assets Land July 1 Equipment 400000 254000 0 254000 0 Cash Dec. 31 Depreciation Expense 49400 Accumulated DepreciationEquipment 49400 (To record depreciation) Dec. 31 Accumulated DepreciationEquipment Equipment 494000 494000 (To record retirement of equipment) Don't show me this message again for the assignment Your answer is partially correct. Try again. Record adjusting entries for depreciation for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Accou nt D Titles at and Debit e Expla natio n D ec . 3 1 Depre ciation Expen se Accum ulated Depre ciation Buildin gs (To record buildin g deprec iation) D ec . 3 1 Depre ciation Expen se Accum ulated Depre ciation Equip ment (To record equip ment deprec ition) Grand Company Balance Sheet (Partial) Credit 546200 546200 $ $ : : $

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ronald W Hilton

8th Edition

0073526924, 9780073526928

More Books

Students also viewed these Accounting questions

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago