At January 1, 2022, Crane Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions occurred: Apr. 1 May 1 June 1 $63,550,000 55,800,000 97,400,000 150,000,000 20,550,000 July 1 Dec. 31 Purchased land for $4 million. Paid $1 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. Sold equipment for $300,000 cash. The equipment cost $2 million when originally purchased on January 1, 2014. Sold land for $5 million. Received $630,000 cash and accepted a 3-year, 5% note for the balance. The land cost $2 million when purchased on June 1, 2016. Interest on the note is due annually each June 1. Purchased equipment for $3 million cash. Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.
At January 1, 2022, Crane Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions occurred: Apr. 1 May 1 June 1 $63,550,000 55,800,000 97,400,000 150,000,000 20,550,000 July 1 Dec. 31 Purchased land for $4 million. Paid $1 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. Sold equipment for $300,000 cash. The equipment cost $2 million when originally purchased on January 1, 2014. Sold land for $5 million. Received $630,000 cash and accepted a 3-year, 5% note for the balance. The land cost $2 million when purchased on June 1, 2016. Interest on the note is due annually each June 1. Purchased equipment for $3 million cash. Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
N4.
Transcribed Image Text:At January 1, 2022, Crane Company reported the following property, plant, and equipment accounts:
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Buildings
Equipment
Land
Apr. 1
May 1
The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments
annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year
useful life and no salvage value.
During 2022, the following selected transactions occurred:
June 1
July 1
Dec. 31
Show Transcribed Text
Jan. 1
Apr. 1
May 1
May 1
Record the above transactions in the tabular summary from part (a). (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign
(or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
June 1
July 1
Dec. 31
Dec. 31
4
Purchased land for $4 million. Paid $1 million cash and issued a 3-year, 6% note payable for the balance. Interest on the
note is payable annually each April 1.
Sold equipment for $300,000 cash. The equipment cost $2 million when originally purchased on January 1, 2014.
Sold land for $5 million. Received $630,000 cash and accepted a 3-year, 5% note for the balance. The land cost $2
million when purchased on June 1, 2016. Interest on the note is due annually each June 1.
Purchased equipment for $3 million cash.
Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.
$
$63,550,000
55,800,000
97,400,000
Cash
150,000,000
-1000000
20,550,000
$
ig
Notes Rec.
$
Interest Rec.
+
Land
Assets
$20,550,000
4000000
Build
Transcribed Image Text:Buildings
$97,400,000
Show Transcribed Text
Notes Payable
Accum. Depr. - Bldgs.
$(63,550,000)
$
Show Transcribed Text
Common Stock
+
J
Equipment
$150,000,000
Revenue
Accum. Depr. - Equip.
Stockholders' Equity
$(55,800,000)
Retained Earnings
Expense
$
$
Interest Payable
Dividend
Li
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