At December 31, 2020, Grand Company reported the following as plant assets. Land $ 4,000,000 Buildings Less: Accumulated depreciation-buildings $28,500,000 12,100,000 16,400,000 Equipment 48,000,000 Less: Accumulated depreciation-equipment 5,000,000 43,000,000 Total plant assets $63,400,000 During 2021, the following selected cash transactions occurred. April 1 Purchased land for $2,130,000. Sold equipment that cost $750,000 when purchased on January 1, 2017. The equipment was sold for $450,000. Sold land purchased on June 1, 2011 for $1,500,000. The land cost $400,000. Purchased equipment for $2,500,000. Retired equipment that cost $500,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. May 1 June 1 July 1 Dec. 31 (a) Your Answer Correct Answer Your answer is correct. 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. (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 O for the amounts.)
At December 31, 2020, Grand Company reported the following as plant assets. Land $ 4,000,000 Buildings Less: Accumulated depreciation-buildings $28,500,000 12,100,000 16,400,000 Equipment 48,000,000 Less: Accumulated depreciation-equipment 5,000,000 43,000,000 Total plant assets $63,400,000 During 2021, the following selected cash transactions occurred. April 1 Purchased land for $2,130,000. Sold equipment that cost $750,000 when purchased on January 1, 2017. The equipment was sold for $450,000. Sold land purchased on June 1, 2011 for $1,500,000. The land cost $400,000. Purchased equipment for $2,500,000. Retired equipment that cost $500,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. May 1 June 1 July 1 Dec. 31 (a) Your Answer Correct Answer Your answer is correct. 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. (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 O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello,
Can I get a detailed explanation on how to determine the
Transcribed Image Text:At December 31, 2020, Grand Company reported the following as plant assets.
Land
$ 4,000,000
Buildings
Less: Accumulated depreciation-buildings
$28,500,000
12,100,000
16,400,000
Equipment
48,000,000
Less: Accumulated depreciation-equipment
5,000,000
43,000,000
Total plant assets
$63,400,000
During 2021, the following selected cash transactions occurred.
April 1
Purchased land for $2,130,000.
Sold equipment that cost $750,000 when purchased on January 1, 2017. The equipment was sold for $450,000.
Sold land purchased on June 1, 2011 for $1,500,000. The land cost $400,000.
Purchased equipment for $2,500,000.
Retired equipment that cost $500,000 when purchased on December 31, 2011. The company received no proceeds
related to salvage.
May 1
June 1
July 1
Dec. 31
(a)
Your Answer
Correct Answer
Your answer is correct.
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. (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 O for the amounts.)
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