Question 17 of 25 6.99 / 10 View Policies Show Attempt History Current Attempt in Progress At December 31, 2022. Ayayai Company reported the following as plant assets. Land $ 4,380,000 $27.460.000 13,430,000 14.030,000 Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation equipment Total plant assets 47.130.000 4,620,000 42,510,000 $60,920,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,020,000 May 1 Sold equipment that cost $630,000 when purchased on January 1, 2019. The equipment was sold for $378.000 June 1 Sold land purchased on June 1, 2013 for $1,600,000. The land cost $400,000. July 1 Purchased equipment for $2,540,000 Dec. 31 Retired equipment that cost $504,000 when purchased on December 31, 2013 Question 17 of 25 6.99/10 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. (List all debit entries before credit entries. 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 for the amounts.) Date Account Titles and Explanation Debit Credit Apr 1 Land 2.020,000 Cash 20200 May 1 Depreciation Expense 215250 Accumulated Depreciation Equipment 2152 (To record depreciation) May 1 Cash 378000 Accumulated Depreciation Equipment 215250 Loss on Disposal of Plant Assets 36750 Equipment 100 (To record sale of equipment) June Cash 1.500.000 Gain on Disposal of Piant Assets estion 17 of 25 6.99/10 Loss on Disposal of Plant Assets 36750 Equipment 63501 (To record sale of equipment) June 1 Cash 1,600,000 Gain on Disposal of Plant Assets 12000 Land 4000 July 1 V Equipment 2,540,000 Cash 25400 Dec 31 Depreciation Expense 0 Accumulated Depreciation Equipment (To record depreciation) Dec. 31 Accumulated Depreciation Equipment 504.000 Equipment 5040 (To record retirement of equipment) Record adjusting entries for depreciation for 2023. (List all debit entries before credit entries. 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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Buildings 13.430,000 Accumulated Depreciation-Buildings 13.4300 (To record building depreciation) Dec. 31 Equipment 4.620.000 Accumulated Depreciation Equipment 46200 (To record equipment deprecition) Your answer is partially correct. Prepare the plant assets section of Ayayai's balance sheet at December 31, 2023. (List Plant Assets in order of Land, Buildings and Equipment.) Ayayai Company Balance Sheet (Partial) December 31, 2023 Property Plant and Equipment Land Buildings 27.460.000 Less : Accumulated Depreciation Buildings 26860000 Equipment 43916000 Less : Accumulated Depreciation Equipment 4,620,000 00 Total Property Plant and Equipment
