QUESTION #2

Instructions:

(A) Journalize the transactions below. Note, the company uses straight-line depreciation for buildings and equipment. Buildings are estimated to have a 50-year life and no residual value. Equipment is estimated to have a 10-year useful life and no residual value. Update depreciation on assets disposed of at the time of sale or retirement.

(B) Record depreciation expense for 2017 on buildings, and separately, equipment.

(C) Post entries affecting the following accounts to their respective T-accounts: Land, Building, Accumulated Depreciation-Building, Equipment, Accumulated Depreciation-Equipment. Then, prepare the plant assets section of Jimenez's statement of financial position at December 31,2017.

COMPANY INFO: At December 31, 2016, Jimenez SA reported the following as plant assets. Land 3,000,000 Buildings . 26,500,000 Less: Accumulated Depreciation-buildings 12,100,000 14,400,000 Equipment . 40,000,000 Less: Accumulated Depreciation-equipment 5,000,000 35,000,000 Total plant assets . 52,400,000 During 2017, the following selected cash transactions occurred. April 1 Purchased land for 2,200.000. May 1 Sold equipment that cost 750,000 when purchased on January 1, 2013. The equipment was sold for 466.000. Hint: Record 2017 depreciation on equipment through April 30, 2017. Then, record sale of equipment. June 1 Sold land purchased on June 1, 2017 for 1,800,000. The land cost 300,000. July 1 Purchased equipment for 2,450,000. Dec. 31 Retired equipment that cost 500,000 when purchased on December 31, 2007. No residual value was received. Hint: Record depreciation for 2017. Then, record retirement of equipment.
GENERAL JOURNAL
(a)
Jan	Account Title	Debit	Credit
1
May	Account Title	Debit	Credit
1
May	Account Title	Debit	Credit
1
Jun	Account Title	Debit	Credit
1
Jul	Account Title	Debit	Credit
1
Dec	Account Title	Debit	Credit
31
Dec	Account Title	Debit	Credit
31
(b)
Dec	Account Title	Debit	Credit
31
Dec	Account Title	Debit	Credit
31

(c)

Instructions: Post above journal entries to the following T-accounts:

select T-Accounts

CASH

EQUIPMENT

BUILDINGS

GAIN/LOSS ON DISPOSAL OF PLANT ASSETS

bal. 40,000,000

bal. 26,500,000

LAND

ACCUMULATED DEPRECIATION--EQUIPMENT

ACCUMULATED DEPRECIATION--BUILDINGS

DEPRECIATION EXPENSE

bal. 3,000,000

bal. 5,000,000

bal. 12,100,000

(c)

Instructions: Prepare only the PLANT ASSETS section of Jimenez's statement of financial position at December 31, 2017.

Your response (show your calculations): JIMENEZ COMPANY SA Partial Statement of Financial Position December 31, 2017 Plant Assets Land . Buildings Less: Accum. Depreciation-Bldg Equipment Less: Accum. Depreciation-Eqmt . Total plant assets ..