Problem 9-4A

At January 1, 2017, Cullumber Company reported the following property, plant, and equipment accounts:

Accumulated depreciation?buildings

$63,050,000Accumulated depreciation?equipment

54,800,000Buildings

97,600,000Equipment

150,800,000Land

22,250,000

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 $4.00 million. Paid $1.000 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 $3.36 million when originally purchased on January 1, 2009.June 1

Sold land for $5.70 million. Received $780,000 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.July 1

Purchased equipment for $2.20 million cash.

Dec. 31

Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

Problam 9-4A At January 1, 2017, Cullumber Company reported the following property, plant, and equipment accounts: Accumulateddepreciationbuildings $63,050,000 Accumulated depreciationequipment 54,800,000 Buildings 97,500,000 Equipment 150,000,000 Land 22,250,000 The company uses straight-line depreciation for buildings and equipment, is 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 $4.00 million. Paid 51.000 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 $3.36 million when originally purchased on January 1, 2009. June 1 Sold land for $5.70 million. Received $700,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.00 million when purchased on June 1, 2011. interest on the note is due annually each June 1. July 1 Purchased equipment for $2.20 million cash. Dec. 31 Retired equipment that cost $1 million when purchased on Deoember 31, 2007. No proceeds were received. Record the above transactlons. (credlt account tltles an automatically indented when tlie amount ls entered. on not lndent manually. I! no entry ls mulrad, select \"No Entry" for the account tltles and enter a for tlie amounts.) DIN mm'm'u Ind Exullnion DIM! Crudll L_ _U (To record deprecation expense) May 1 (To record sale of equipment) June 1 (To record depreoauon expense) ml #1 gr (To record depredaiion mense) [ ill H ll l SE (To record disposal of equipment) ' LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Record any adjusung entrles required at December 3L (Credit account titles are automatically indented when the amount is entered. Do not lndent manually. If no entry is required, select "No Entry" for the account tltles and enter 0 for the amounts.) DIM Amount 11GB and Explalwon Dehlt : C (To record depreciation expense for bui|dings) % C (To record devreclahon expense tor equipma'lt) : C (To record interest incurred but notyet paio) new: C av i C (i: record interest aocrueo but not yet received) 2 GB GD ED BU ' LINK Ta TEXT LINK To TEXT LINK To TEXT LINK To TEXT Prepare the property, plant, and equipment section of the company's statement of nancial position at December 31. (Llst Property, Plant and Equlpmant In order a! Land, Bulldlngs and Equipment.) CULLUMEER COMPANY statement of Financial position (Partial) ' LINK To TEXT LINK To TEXT LINK To TEXT LINK To TEXT Question \"temper: o of 5 used SAVE so: LATER