1. Record PPE Transactions

Background:

Plants from Paradise reports under ASPE, and has a December 31, 2021, year end. All work that you are preparing is for their financial statements dated as such.

Miranda provided you following details about equipment that was purchased during the year, and asked that you record the following transactions:

1. Original Purchase, as they were not recorded until now all were paid with cash at the time of purchase
2. Any dispositions in the year
3. Amortization, using the appropriate method for new and previously purchased assets
   1. An explanation as to why you selected that method

Assets purchased:

1. New greenhouse for $20,000, purchased on June 1, 2021. The greenhouse is expected to last 15 years and will have a salvage value of $2,500 and should be recorded to building.

2. A new tractor was purchased for $12,500 on November 1, 2021. The tractor is expected to last 5 years. It will be used as scrap metal after its useful life, with no salvage value. The tractor is expected to last 10,000 operating hours.

Assets sold:

1. On January 1, 2021, Plants sold their old tractor for cash as it was going to be replaced by the new one in the winter. This tractor had the following relevant balances:

Original Purchase: $22,000

Accumulated Amort: $12,000

Sale Price: $10,000

Previously purchased assets, amortization:

1. Please record amortization for each of the newly purchased assets as appropriate, separately, and explain each:

2. For the other equipment that was previously purchased, it has an original purchase price of $55,000 and it is depreciated using straight-line, for a yearly expense of $5,000. Note: make no adjustment for the disposed equipment, or newly purchased assets here.

3. For the other buildings, they have a combined total purchase price of $125,000, and is amortized using straight-line at a rate of $10,000 a year.

Note: make no adjustment for the disposed equipment, or newly purchased assets here

Relevant Accounts:

1000	Cash	2010	Wages Payable
1010	Accounts Receivable	3000	Miranda Cornell, Equity
1015	Allowance for Doubtful Accounts	4000	Sales Revenue Plants
1020	Interest Receivable	4010	Sales Revenue Soil
1030	Inventory - Plants	4020	Sales Revenue Delivery
1040	Inventory - Soil	5000	Cost of Goods Sold
1050	PPE Equipment	5010	Sales Discounts Expense
1055	Acc. Amortization Equipment	5040	Bad Debt Expense
1060	PPE Building	5050	Salaries Expense
1065	Acc. Amortization - Building	5060	Amortization Expense
2000	Accounts Payable

Journal Entry Template: note please record each transaction separately

Entry #	Date	Description	Account Number	Account Name	Debit or Credit	Amount