Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Prblem 7-4 Mery 1, 2017,Ivad C y he fwg pperts piart, ene equpert acnts Amted 200 Acmeddcatn t 350, 700000 150 2,150,000 bdings toe Land

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
image text in transcribed
image text in transcribed
Prblem 7-4 Mery 1, 2017,Ivad C y he fwg pperts piart, ene equpert acnts Amted 200 Acmeddcatn t 350, 700000 150 2,150,000 bdings toe Land The comoeny us streight ne deprecition fer buildings and eqioment, ts year end s December 31, ane t makes adustments ansty The budings are estinted to tve a0w Ourng 2011, the ng antions cured We and no savage a the egmet is emad toave a 30r e and ne sivae veln Prchd nd for $4o Fa $1100 ion cash and ud payable tor be bteret on the e is seyobe ay n Aor 1 Apr1 Ma s 3-e, Spment t $3n h The apment ost 1.30 n whn ongealy hn ary 1, 200 Jne 1 Sold and fer mn Recved $790,00 csh and accpee 3-, %sete tor the belce The nd cet 51.80 Parchaed pnt for $20mtor cah e pree oJne 1, 201 re on the note s de arnaly each une Dec 31 Reted pnet tet cost 1 mton when purchsed on December 31, 2007 No ceets wee receiee h s the pets, pt, bw y 1,201 atrmac c decease Asets L cde uty eatve ige (r parenes) in tnt af the at er frthe partr Ad Lty y f Assa Stecanr tt ned Eamings Acoum eeBigs tepment Cash Land Accum. Depr Eutp.Interest Payable otes Payable Common Stack Buding Expense Aven Dden r e e vw y S t( he (atr e or ecader ety, ee epe er t d of the amnt aned or e part A y y ear wa adeease in Assets di Betened Earings Cen Accm Dep Acm Dearfee tePaya tes PayleConme Steck and udings nt Revenu Expense ividend n Ar Hay De lery 1,217, Comp pst, net Aca b Amdate dp ugs 235 Lane he w e e g d ,s d br d aT n e n sv h e Apr ay ne y De31 e t 1 phet n y he nt te r aaly ne te t y w t g t af e ty y w a d c ty a t g Cah Bng and g re al h pa y ty wa d tet ing et R tand A e E Ag Me 1 y 3 Problem 7-4 At enary 1, 2017, anhoe Campany ported the fulwing prperty,a, and ouipent a nts Accumulated deprecation-buding Accumlated deprecation-qpent s62850000 53,850,000 Suldings 97,500,000 Equpme Lane 158,750,00 2,350,000 The company s aighe ine drpreciaon for adngs and equment, year and is December 31, ane makes atjumts analy The buldings ae eated to have 40-year te and no salvage valut he ronent ated te eve a- uaet e and ne saage valut During 2017, the folowing selected tranations ocured Purchased nd for $4.40 min Pad 1.30 on cash and aed3vear, %nate pa for the belanoe Irerest on the nete is payable aaly ach April 1 Sold eqment for 330,300 cah The epent ct $3.30 mon en arignaly puchased on January 1, 300 Sold land for $4.a3 maion Recelved $750,000 cah and accepted a 3year, %note for the balance The lend cst $0mnhen pch n ne 1, 201. Ie Purthased equpmnt for $2 me cash Retired eoment that cost $1 on we pnchaed on Decenber 31, Apr. 1 May 1 June 1 aaly each ne July 1 Dec. 31 2007 No preceeds wee received Prpare a tabar sunmary that incudes the property, and, and ent bances as of January 1, 2017 (ara transat caues a decrease in Asses, Lab r tec ers toay acea negative aip (rar hent af the amun etered for the part Asset, Liabn Assela ietis Stechders ty elaned Earning Cash Ntes Ret +Interest Rec. Land Buildings Accum Depr dge teipment Accum Depr Ep Interat Pyable Notes Papale Commn Steck Expense Otviden lan. i www. AR L w Record the abeve transactions in he tabuler sumary frm pat c (aracton ces a decrease n Assets, Liabties or Shackholders Equty, plece nege g(er perethes) ent er the anund ted for e par r Asse Lity r Eqity ite hat wer redeced Assels sbti Malde teaity Relained Earinge Accum Depr. Bg Acnum. Depr-Equip eereat Payable Notes Payable Commn eck Dividend Revear Expense Cash Notes Rec. +Interest Rec Land udings Eepents Apr. 1 May 1 May 1 Jne 1 July 1 Dec 31 Dec. 3 sa hro 74 eary 1, 2012, ne Comoery reseted the towing aets p an eooment o0unes s0000 Acumuaned recato-evnet 0000 0,000 Accumued dgrecation-buiting Bdng teet s750,00 50,000 a The company uses straighe-e deprecuion tor buildngs and equpment, s yeand December 33, andit maes autents annuly The buidings ane etmated to have a 40-ar ued e and no aage ourng 20, e to ed a re Ar. Pre and or s n 1.300 maen can ane a 3ye, noe aye or e bne Intrt on the note is pue anuaty ech Apns 1 vt the equpment s etmaed to havea 10-year uutd ie and no uage ate MaySald eupmee tor $330,00 the oupment cost $3.30 mn en angnay purhased on January 1, 200 e: S nd for .0n Reive s50.0 a ye, % he bece The land st 0nwe purhesed on Je , 201 beest on e note s e y e Jne ayP m to 0e bec 31 Rtre epmet that cot s1 towhen purhsed on December 3, 200 No prceets were eceved epare a ubr suay that indudes he prpets pan, and euipmet b a arStech fouits placeage g(arpar ) ost of the at ened fr he ptil aary 1, 2017. deciA At, bty o Euity that w A Stckdetty Raned tag Expee Notes Rc Intert Rec. Accam Degr.-idg ipmentAccum. Depr.-Equipntereat PayableMates PayableCommon Steck + bdend Cash Land Buding 1 ww ns i the tabuar sunnary frampen mes or Stocaen ety, paceegte porer he oove tion caesa decrease in ds e at the amount eatwed re partouler sset ty ar fouty e thtwree Assets Labi Stockhalders toty 4 Beed Eing AcDapr Eq t Payaeot PayblComma Stack Nabs Re. Intet Re Divident Cash utdngs tenet Revne txpasse Land May1 May 1 Je1 ly i De 31 Dec 31 sm w roblem 7-4 ary ,2017, vwoe Compary rte the fng ts andipmet nts d a .esoo00 Accumuled dprecaton-e t 0000 Budings teene Land 00 0000 250,000 m p de trdndment, ts yearnd Deender 23, and ma ay The g eated to have ar t e andva the un 217, g seeed nret rP ane to s n t300n ne u e ee or he bece terstonhe ote is eatye A 1 Ma S mere or 30,00 he t330n ty ay 1, 200 S n r s0eneet s700 e ,nne for e te The wnd 0 wen pred ne 21 n me noteae t hne t vea10-year u e and re to an ene t nn o Deceer ,200 No eve snnay that ndudes e anpets pa, andones dorese Assas ar St te gar eses) st femt eere er e pt anary 1, 201 toits pece A, aty or tuity e tt CALCULATOR PRINTER VERSEC cts At January 1, 2017, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings $62,650,000 53,850,000 97,600,000 150,750,000 20,350,000 Equipment Land The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful i During 2017, the following selected trarsactions occurred: Purchased land for $4.40 million. Paid $1.100 million cash and issued a 3-year, 6 % note payable for the balance. Interest on the note is payable annually each April 1, Sold equipment for $330,000 cash. The equipment cost $3.30 milion when originally purchased on January 1, 2009 Sold land for $4.02 million. Received $750,000 cash and accepted a 3-year, 5 % note for the balance. The land cost $1.80 milion when purchased on June 1, 2011. Interest on the note Purchased equipment for $2.80 million cash Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. Apr. 1 May 1 Study June 1 July 1 Dec. 31 Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (Ir a transaction causes a decrease in Assets, Liabilitles or Stockholders' Equity Liability or Equity item that was reduced.) Assets Equip.Interest Pam Notes Rec. Accum, Depr, +Interest Rec. Land Accum. Depr,-Bidgs. + Equipment Buildings Cash + Jan. 1 $ VIDEO SOMELAR PROBLEM AUNK TO TEXT NK TO TEVT At January 1, 2017, Ivanhoe Company reported the following property, plant, and equipment accounts: $62,650,000 Accumulated depreciation-bulildings Accumulated depreciation-equipment 53,850,000 Buildings 97,600,000 150,750,000 Equipment Land 20,350,000 The company uses straight-line depreciation for buldings and equipment, its year-end is December 31, and it makes adjustments annually. 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. Duping 2017, the following selected transactions occurred: Purchased land for $4.40 million. Paid $1.100 million cash and issued a 3-year, 6 % note payable for the balance. Interest on the note Is payable annually each April 1. Apr. 1 Sold equipment for $330,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009. May 1 Sold land for $4.02 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. June 1 Purchased equipment for $2.80 million cash. July 1 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. Dec. 31 ed A y y e e M d ty Cash erat Re Land ingn A te tert e Py teme lan vee toodend Apr May 1 May 1 ne 1 Dec 3 31 Recand ans antments equed December 31. (r a bection c dcree s ts tes tc e particr At y e f the at y r ty t w reed drty d Earsng Cash Nales Rec +Interest R A b fe taret Faa u Payal C tk ng Am Dep-dg Land venue Dividen n1 Apr May 1 May 3 ne li Jly 1 Dec. 31 Dec 3 Dec 31 Dec 31 Dec 3 Dec 31 rarme a nt andered ta the partir At Libaly r Assts ti hde ety eted Eaminge tpena Accm Depr g teret Payable P e C n Cash Metes Rec +Inbereat Ba ngs Ac Depr Revanue ede Sand + tepent Recond the above ransacons in the tatular sumimay frm part ( (a branction causes a decreane in

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

Accounting A Smart Approach

Authors: Mary Carey, Jane Towers Clark, Cathy Knowles

1st Edition

0199587418, 978-0199587414

More Books

Students explore these related Accounting questions