Problem 10-05A a-c (Video) At December 31, 2020, Whispering Winds Company reported the following as plant assets. $ 3,500,000 17,000,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $27,000,000 10,000,000 47,000,000 4,500,000 42,500,000 $63,000,000 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 $600,000 when purchased on January 1, 2017. The equipment was sold for $360,000. Sold land purchased on June 1, 2011 for $1,410,000. The land cost $391,000. Purchased equipment for $2,300,000. Retired equipment that cost $471,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. 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 o for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1 V Land 2000000 Cash 2000000 May 1 Depreciation Expense 20000 Accumulated Depreciation Equipment 20000 (To record depreciation) May 1 Cash 360000 v Accumulated Depreciation Equipment 260000 Equipment 600000 Gain on Disposal of Plant Assets 20000 (To record sale of equipment) (To record sale of equipment) June 1 Cash 1410000 Land 391000 Gain on Disposal of Plant Assets 1019000 July 1 Equipment 2300000 Cash 2300000 Dec. 31 v Depreciation Expense 47100 Accumulated Depreciation Equipment 47100 (To record depreciation) Dec. 31 Accumulated Depreciation-Equipment 471000 Equipment 471000 (To record retirement of equipment) Your answer is partially correct. Try again. 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 Dec. 31 Depreciation Expense 5400000 Accumulated Depreciation-Buildings 540000 (To record building depreciation) Dec. 31 Depletion Expense 47079.00 IX X Accumulated Depreciation-Buildings 47079.00 (To record equipment deprecition) LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Prepare the plant assets section of Whispering Winds's balance sheet at December 31, 2021. (List Plant Assets in order of Land, Buildings and Equipment.) Whispering Winds Company Balance Sheet (Partial) IX X
