Question
The property, plant, and equipment section of the Jasper Companys December 31, 2015, balance sheet contained the following: Property, plant, and equipment: Land $ 120,000
The property, plant, and equipment section of the Jasper Companys December 31, 2015, balance sheet contained the following:
Property, plant, and equipment: | ||||||
Land | $ | 120,000 | ||||
Building | $ | 840,000 | ||||
Less: Accumulated depreciation | (200,000 | ) | 640,000 | |||
Equipment | 180,000 | |||||
Less: Accumulated depreciation | ? | ? | ||||
Total property, plant, and equipment | ? | |||||
The land and building were purchased at the beginning of 2011. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. |
The equipment is comprised of the following three machines: |
Machine | Cost | Date Acquired | Residual Value | Life in Years | ||||
101 | $ | 70,000 | 1/1/13 | $ | 7,000 | 10 | ||
102 | 80,000 | 6/30/14 | 8,000 | 8 | ||||
103 | 30,000 | 9/1/15 | 3,000 | 9 | ||||
The straight-line method is used to determine depreciation on the equipment. On March 31, 2016, Machine 102 was sold for $52,500. Early in 2016, the useful life of machine 101 was revised to seven years in total, and the residual value was revised to zero. |
Required: | |||
1. | Calculate the accumulated depreciation on the equipment at December 31, 2015. | ||
|
3. | Prepare the 2016 year-end adjusting journal entries to record depreciation on the building and equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started