At December 31, 2025, Blue Corporation reported the following plant assets.LandBuildingsLess: Accumulated depreciation-buildingsEquipmentLess: Accumulated depreciation-equipmentTotal plant assets$26,520,00011,934,00060,640,0007,580,000During 2026, the following selected cash transactions occurred.1$4,548,00014,586,00053,060,000$72,194,000Apr.1 Purchased land for $3,335,200.MaySold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720.June 1Sold land for $2,425,600. The land cost $1,516,000.July 1Purchased equipment for $1,667,600.Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.)Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and nosalvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assetsdisposed of at the time of sale or retirement. (List all debit entries before credit entries. Record entries in the order displayed in theproblem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts.)DateApril 1May 1>}}]Account Titles and ExplanationLandCashCashAccumulated Depreciation-Equipment(To record depreciation on equipment sold)(To record sale of equipment)(To record depreciation on equipment retired)(To record disposal of equipment)Debit3,335,200257,720Credit

The depreciation can be provided using the straight-line method. Under SLM the depreciation is…

At December 31, 2025, Blue Corporation reported the following plant assets. $4,548,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $26,520,000 11,934,000 60,640,000 7,580,000 During 2026, the following selected cash transactions occurred. 14,586,000 53,060,000 $72,194,000 Apr. 1 May 1 June 1 July 1 Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. Purchased land for $3,335,200. Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. Sold land for $2,425,600. The land cost $1,516,000. Purchased equipment for $1,667,600.

At December 31, 2025, Blue Corporation reported the following plant assets. $4,548,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $26,520,000 11,934,000 60,640,000 7,580,000 During 2026, the following selected cash transactions occurred. 14,586,000 53,060,000 $72,194,000 Apr. 1 May 1 June 1 July 1 Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. Purchased land for $3,335,200. Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. Sold land for $2,425,600. The land cost $1,516,000. Purchased equipment for $1,667,600.

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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