(A) Journalize the above transactions. (B) Record adjusting entries for 2018 depreciation. (C) Prepare the plant's asset section of the company's balance sheet as at December 31, 2018. At December 31, 2017, Kisses Corporation reported the following plant assets:Land$3,000,000BuildingsLess: Accumulated Depreciation BuildingsEquipmentLess: Accumulated Depreciation Equipment$28,500,00012,100,00048,000,0005,000,00016,400,00043,000,000$62.400,000Total Plant AssetsDuring 2018, the following transactions occurred:April 1", purchased land for $2,630,000.• May 1", sold equipment that cost $750,000 when it was purchased on January 1*, 2013.The equipment was sold for $370,000.• June 1*, sold land purchased on June 1, 2005 for $1,800,000. The land cost $800,000• July 1*, Purchased equipment for $800,000• December 31", Retired fully depreciated equipment that cost $470,000 when purchasedon December 31, 2008. No salvage value was receivedAdditional Information:• The company uses straight line depreciation.The buildings are estimated to have a 40 year life and no salvage value.The equipment is estimated to have a 10 year life and no salvage value.• Depreciation is updated at the time of sale or retirement.

(A)Journal entries 2018 April 1. Land a/c Dr. 2630000 To bank.…

Answered: (A) Journalize the above transactions.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(A) Journalize the above transactions.

(B) Record adjusting entries for 2018 depreciation.

At December 31, 2017, Kisses Corporation reported the following plant assets:
Land
$3,000,000
Buildings
Less: Accumulated Depreciation Buildings
Equipment
Less: Accumulated Depreciation Equipment
$28,500,000
12,100,000
48,000,000
5,000,000
16,400,000
43,000,000
$62.400,000
Total Plant Assets
During 2018, the following transactions occurred:
April 1", purchased land for $2,630,000.
• May 1", sold equipment that cost $750,000 when it was purchased on January 1*, 2013.
The equipment was sold for $370,000.
• June 1*, sold land purchased on June 1, 2005 for $1,800,000. The land cost $800,000
• July 1*, Purchased equipment for $800,000
• December 31", Retired fully depreciated equipment that cost $470,000 when purchased
on December 31, 2008. No salvage value was received
Additional Information:
• The company uses straight line depreciation.
The buildings are estimated to have a 40 year life and no salvage value.
The equipment is estimated to have a 10 year life and no salvage value.
• Depreciation is updated at the time of sale or retirement.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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