Question 1 At January 1, 2017, Blossom Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment $60,200,000 52,000,000 Buildings 97,200,000 Equipment 150,000,000 Land 20,000,000 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. 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 Sold equipment for $200,000 cash. The equipment cost $2.40 million when originally purchased on January 1, 2009. Sold land for $3.60 million. Received $600,000 cash and accepted a 3-year, 5 % note for the balance. The land cost $1.20 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. Apr. 1 May 1 June 1 July 1 Purchased equipment for $2.00 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds Dec. 31 were received. (a) Your answer is correct. 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 tities and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Kimmel, Financial Accounting, 8e Help System Announcements CALCULATOR PRINTER VERSION NEXT BACK Your answer is partially correct. Try again. 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 o for the amounts.) Account Titles and Explanation Debit Date Credit Dec. 31 Depreciation Expense 2430000 Accumulated Depreciation-Buildings 2430000 (To record depreciation expense for buildings) Dec. 31 Depreciation Expense 14660000 Accumulated Depreciation-Equipment 14660000 (To record depreciation expense for equipment) Dec. 31 Interest Expense 100000 Interest Payable 100000 (To record interest incurred but not yet paid) Dec. 31 Interest Receivable Interest Revenue (To record interest accrued but not yet received) LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT