At December 31, 2022, Whispering Winds Company reported the following as plant assets. Land- $3,500,000 Buildings- $27,000,000 Less: Accumulated deprecation- buildings 10,000,000 17,000,000 Equipment 47,000,000 Less: Accumulated depreciation- equipment 4,500,000 42,500,000 Total plant assets $63,000,000 During 2023, the following selected cash transactions occurred. April 1- Purchased land for $2,000,000 May 1- Sold equipment that cost $600,000 when purchased on January 1, 2019. The equipment was sold for $360,000. June 1- Sold land purchased on June 1, 2013 for $1,410,000. The land costs $391,000. July 1- Purchased equipment for $2,300,000. Dec. 31- Retired equipment that cost $471,000 when purchased on December 31, 2013. A.) Journalize the above transactions. The company uses straight-line deprecation for buildings and equipment. The buildings are estimated to have 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. ( List all debit before credit entries. Record journal entries in the order presented in the problem. If no entry is required, select "no entry") B.) Record adjusting entries for depreciation for 2023. ( List all debit before credit entries. Record journal entries in the order presented in the problem. If no entry is required, select "no entry") C.) Prepare the plant assets section of Whispering Winds's balance sheet at December 31, 2023. (List Plant Assets in order of Land, Buildings and Equipment.)
At December 31, 2022, Whispering Winds Company reported the following as plant assets.
Land- $3,500,000
Buildings- $27,000,000
Less: Accumulated deprecation- buildings 10,000,000 17,000,000
Equipment 47,000,000
Less:
Total plant assets $63,000,000
During 2023, the following selected cash transactions occurred.
April 1- Purchased land for $2,000,000
May 1- Sold equipment that cost $600,000 when purchased on January 1, 2019. The equipment was sold for $360,000.
June 1- Sold land purchased on June 1, 2013 for $1,410,000. The land costs $391,000.
July 1- Purchased equipment for $2,300,000.
Dec. 31- Retired equipment that cost $471,000 when purchased on December 31, 2013.
A.) Journalize the above transactions. The company uses straight-line deprecation for buildings and equipment. The buildings are estimated to have 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. ( List all debit before credit entries. Record
B.) Record
C.) Prepare the plant assets section of Whispering Winds's balance sheet at December 31, 2023. (List Plant Assets in order of Land, Buildings and Equipment.)
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