Problem 9-4A Mt January 1, 2017, Wilchorse Co. reported the following property, plant, and equipment accounts Accumulated depreciation-buildings 61,350,000 Accumulated depreciation-equipment 54,700,000 Buildings Equipment Land 97,200,000 1S0,300,0o0 20,150,000 The company uses straight-ine deprociation for buildings and equipment, its year-end is Dacember 31, and it makes adjusting entries annually. The buidings are estimated to have a 40-yoar useful lie and no salvage value; the equipment is estimated to have a 10-year useful life and no svge value During 2017, the folloning sclected transactions occurred. Apr. 1 Purchased land for g4.30 million. Paid S 1.075 milion 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 $210,000 cash. The equipment cost 3.30 million when originaly purchased on January 1, 2009 June 1 Sold land for $5.04 million, Received $750,000 milion cash and accepted 3-yeer, 5% note for the balance The land cost $1.20 million when purchased on 2 ne 1. 2011. Interest on the note is due annually each June 1 July Purchased equipment for $2.00 million cash Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No procceds were reccived. Your answer is partially correct. Try again. Record the above trancactions. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter O for the amounts Date Account Titles and Explanation Debit April 1 Land Cash 1075000 Notes Payabla 3225000 May Depreciation Expense 10000 To record depreciation expense May 1 21 d sale of equipment Problem 9-4A Mt January 1, 2017, Wilchorse Co. reported the following property, plant, and equipment accounts Accumulated depreciation-buildings 61,350,000 Accumulated depreciation-equipment 54,700,000 Buildings Equipment Land 97,200,000 1S0,300,0o0 20,150,000 The company uses straight-ine deprociation for buildings and equipment, its year-end is Dacember 31, and it makes adjusting entries annually. The buidings are estimated to have a 40-yoar useful lie and no salvage value; the equipment is estimated to have a 10-year useful life and no svge value During 2017, the folloning sclected transactions occurred. Apr. 1 Purchased land for g4.30 million. Paid S 1.075 milion 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 $210,000 cash. The equipment cost 3.30 million when originaly purchased on January 1, 2009 June 1 Sold land for $5.04 million, Received $750,000 milion cash and accepted 3-yeer, 5% note for the balance The land cost $1.20 million when purchased on 2 ne 1. 2011. Interest on the note is due annually each June 1 July Purchased equipment for $2.00 million cash Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No procceds were reccived. Your answer is partially correct. Try again. Record the above trancactions. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter O for the amounts Date Account Titles and Explanation Debit April 1 Land Cash 1075000 Notes Payabla 3225000 May Depreciation Expense 10000 To record depreciation expense May 1 21 d sale of equipment
