Problem 9-4A

At January 1, 2017, Carla Vista Co. reported the following property, plant, and equipment accounts:

Accumulated depreciationbuildings $60,300,000 Accumulated depreciationequipment 54,700,000 Buildings 97,500,000 Equipment 150,650,000 Land 20,800,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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. During 2017, the following selected transactions occurred:

Apr. 1 Purchased land for $4.60 million. Paid $1.150 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. May 1 Sold equipment for $240,000 cash. The equipment cost $3.60 million when originally purchased on January 1, 2009. June 1 Sold land for $4.68 million. Received $690,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.50 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. July 1 Purchased equipment for $2.90 million cash. Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit choose a transaction date April 1 May 1 June 1 July 1 Dec. 31 enter an account title enter a debit amount enter a credit amoun enter an account title enter a debit amount enter a credit amoun enter an account title enter a debit amount enter a credit amoun choose a transaction date April 1 May 1 June 1 July 1 Dec. 31 enter an account title to record depreciation expense enter a debit amount enter a credit amoun enter an account title to record depreciation expense enter a debit amount enter a credit amoun (To record depreciation expense) May 1 enter an account title to record sale of equipment on May 1 enter a debit amount enter a credit amoun enter an account title to record sale of equipment on May 1 enter a debit amount enter a credit amoun enter an account title to record sale of equipment on May 1 enter a debit amount enter a credit amoun enter an account title to record sale of equipment on May 1 enter a debit amount enter a credit amoun (To record sale of equipment) June 1 enter an account title on June 1 enter a debit amount enter a credit amoun enter an account title on June 1 enter a debit amount enter a credit amoun enter an account title on June 1 enter a debit amount enter a credit amoun enter an account title on June 1 enter a debit amount enter a credit amoun choose a transaction date April 1 May 1 June 1 July 1 Dec. 31 enter an account title enter a debit amount enter a credit amoun enter an account title enter a debit amount enter a credit amoun choose a transaction date April 1 May 1 June 1 July 1 Dec. 31 enter an account title to record depreciation expense enter a debit amount enter a credit amoun enter an account title to record depreciation expense enter a debit amount enter a credit amoun (To record depreciation expense) choose a transaction date April 1 May 1 June 1 July 1 Dec. 31 enter an account title to record disposal of equipment enter a debit amount enter a credit amoun enter an account title to record disposal of equipment enter a debit amount enter a credit amoun (To record disposal of equipment)

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Record any adjusting entries required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record depreciation expense for buildings enter a debit amount enter a credit amount enter an account title to record depreciation expense for buildings enter a debit amount enter a credit amount (To record depreciation expense for buildings) Dec. 31 enter an account title to record depreciation expense for equipment enter a debit amount enter a credit amount enter an account title to record depreciation expense for equipment enter a debit amount enter a credit amount (To record depreciation expense for equipment) Dec. 31 enter an account title to record interest incurred but not yet paid enter a debit amount enter a credit amount enter an account title to record interest incurred but not yet paid enter a debit amount enter a credit amount (To record interest incurred but not yet paid) Dec. 31 enter an account title to record interest accrued but not yet received enter a debit amount enter a credit amount enter an account title to record interest accrued but not yet received enter a debit amount enter a credit amount (To record interest accrued but not yet received)

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Prepare the property, plant, and equipment section of the companys statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

CARLA VISTA CO. Statement of Financial Position (Partial) choose an accounting period For the Month Ended December 31, 2017 For the Year Ended December 31, 2017 December 31, 2017 select an opening section name Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity enter a balance sheet item $enter a dollar amount enter a balance sheet item $enter a dollar amount select between addition and deduction Add Less : enter a balance sheet item enter a dollar amount enter a subtotal of the two previous amounts enter a balance sheet item enter a dollar amount select between addition and deduction Less Add : enter a balance sheet item enter a dollar amount enter a subtotal of the two previous amounts select a closing section name Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity