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At January 1, 2022, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $62,650,000 53,850,000 97,600,000 150,750,000 20,350,000

At January 1, 2022, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $62,650,000 53,850,000 97,600,000 150,750,000 20,350,000

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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Current Attempt in Progress At January 1, 2022, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment. Land Apr. 1 May 1 June 1 July 1 Dec. 31 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: (a) Jan. 1 $ $62,650,000 Cash eTextbook and Media List of Accounts 53,850,000 97,600,000 150,750,000 Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2022. (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.) 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 $330,000 cash. The equipment cost $3 million when originally purchased on January 1, 2014. Sold land for $4 million. Received $750,000 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. 20,350,000 + $ Ɔ Notes Rec. Interest Rec. ⠀ + Lar
Transcribed Image Text:Current Attempt in Progress At January 1, 2022, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment. Land Apr. 1 May 1 June 1 July 1 Dec. 31 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: (a) Jan. 1 $ $62,650,000 Cash eTextbook and Media List of Accounts 53,850,000 97,600,000 150,750,000 Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2022. (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.) 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 $330,000 cash. The equipment cost $3 million when originally purchased on January 1, 2014. Sold land for $4 million. Received $750,000 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. 20,350,000 + $ Ɔ Notes Rec. Interest Rec. ⠀ + Lar
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