Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help At December 31, 2020, Cheyenne Corp, reported the following as plant assets, During 2021, the following selected cash transactions occurred. April 1 Purchased

please help
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
At December 31, 2020, Cheyenne Corp, reported the following as plant assets, During 2021, the following selected cash transactions occurred. April 1 Purchased land for $2,100,000. May 1 Sold equipment that cost $1,080,000 when purchased on January 1, 2017. The equipment was sold for $648,000. June 1 Sold land purchased on June 1.2011 for $1,530,000. The land cost $408,000, July 1 Purchased equipment for $2,370,000. Dec, 31 Retired equipment that cost $485,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. 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 occount titles are outomotically 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 O for the amounts.) Accumulated Depreciation-Equipment (To record depreciation) Accumulated Depreciation-Equipment 36000 21000r \begin{tabular}{rr} \hline 360 \\ \hline \end{tabular} May 1 Cash Equipment Gain on Disposal of Plant Assets (To record sale of equipment) Land (To record sale of equipment) June 1 i Cash 1530000 Gain on Disposal of Plant Assets 11220 July 1 Equipment 2370000 Dec:31 Depreciation Expense 48500 Accumulate : Depreciation-Equipment (Torecord depreciation) Gain on Disposal of Plant Assets Equipment Cash 23700 Accurnulated Depreciation-Equipment (To record depreciation) Accumulated Depreciation-Equipment Equinment (To record retikiment of equipment) Record adjusting entries for depreciation for 2021. (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.) Plant Assets. Land

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

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

7th Edition

1259108023, 9781259108020

More Books

Students also viewed these Accounting questions

Question

Illustrate the systems approach of family therapy.

Answered: 1 week ago