Problem 10-05A a-c (Video) At December 31, 2020, Swifty Company reported the following as plant assets. $ 4,080,000 16,150,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation equipment Total plant assets $28,360,000 12,210,000 48,670,000 5,160,000 43,510,000 $63,740,000 During 2021, the following selected cash transactions occurred. April 1 May 1 June 1 July 1 Dec. 31 Purchased land for $2,000,000. Sold equipment that cost $780,000 when purchased on January 1, 2017. The equipment was sold for $468,000. Sold land purchased on June 1, 2011 for $1,410,000. The land cost $392,000. Purchased equipment for $2,430,000. Retired equipment that cost $502,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. Your answer is partially correct. Try again. 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 o for the amounts.) Debit Credit Date Apr. 1 Account Titles and Explanation Land Cash 2000000.00 T May 1 Depreciation Expense 2600.00 Accumulated Depreciation-Equipment 2600.00 (To record depreciation) May 1 Cash 468000.00 Accumulated Depreciation-Equipment 338000.00 Equipment 780000.00 Gain on Disposal of Plant Assets 260000.00 (To record sale of equipment) June 1 Cash 0000.00 Land 392000.00 Gain on Disposal of Plant Assets | 1018000.00 July 1 | Equipment 2430000.00 Cash 2430000.00 Gain on Disposal of Plant Assets 1018000.00 T July 1 l Equipment 430000.00 Cash 2430000.00 T Dec. 31 | Depreciation Expense 50200.00 | Accumulated Depreciation-Equipment 50200.00 (To record depreciation) Dec. 31 | Accumulated Depreciation-Equipment 02000.00 Equipment 502000.00 (To record retirement 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 o for the amounts.) Date Account Titles and Explanation Debit Credit 1 Depreciation Expense 00 Accumulated Depreciation-Buildings 567200.00 (To record building depreciation) Dec. 31 | Depreciation Expense 60300.00 4860300.00 Accumulated Depreciation-Equipment (To record equipment deprecition) Swifty Company Balance Sheet (Partial) December 31, 2021 T Current Assets 5688000.00 Land 1 Buildings 28360000.00 I Less TAccumulated Depreciation-Buildings 27712 15582800.00 Equipment |49818000.00 Less 10260500.00 39557500.00 Accumulated Depreciation-Equipment Total Current Assets 60828300.00 Click if you would like to Show Work for this question: Open Show Work
