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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.

FINANCIAL ACCOUNTING
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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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: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
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
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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