Land 31, Swifty empany reported the following as plant assets. $28,210,000 13,200,000 48,670,000 Less: Accumulated depreciation-equipment 4,980,000 Total plant assets Buildings Less: Accumulated depreciation-buildings Equipment $ 3,980,000 15,010,000 planation 43,690,000 $62,680,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,200,000. May 1 Sold equipment that cost $840,000 when purchased on January 1, 2019. The equipment was sold for $504,000. June 1 Sold land purchased on June 1, 2013 for $1,450,000. The land cost $399,000. July 1 Purchased equipment for $2,480,000. Dec. 31 Retired equipment that cost $491,000 when purchased on December 31, 2013. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 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 entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

ss.

Subject:- Accounting 

 

At December 31, 2022, Swifty Company reported the following as plant assets.
$ 3,980,000
Land
Buildings
Less: Accumulated depreciation-buildings
Equipment
Less: Accumulated depreciation-equipment
Total plant assets
April 1
May 1
June 1
July 1
Dec. 31
During 2023, the following selected cash transactions occurred.
Purchased land for $2,200,000.
Sold equipment that cost $840,000 when purchased on January 1, 2019. The equipment was sold for $504,000.
Sold land purchased on June 1, 2013 for $1,450,000. The land cost $399,000.
Jate
May 1
PL
Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are
estimated to have a 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 entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in
the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Account Titles and Explanation
Debit
(To record depreciation)
$28,210,000
13,200,000
48,670,000
4,980,000
Purchased equipment for $2,480,000.
Retired equipment that cost $491,000 when purchased on December 31, 2013.
(To record sale of equipment)
15.010,000
(To record depreciation)
43,690,000
$62.680,000
(To record retirement of equipment)
Credit
0000
0000000000000
Transcribed Image Text:At December 31, 2022, Swifty Company reported the following as plant assets. $ 3,980,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets April 1 May 1 June 1 July 1 Dec. 31 During 2023, the following selected cash transactions occurred. Purchased land for $2,200,000. Sold equipment that cost $840,000 when purchased on January 1, 2019. The equipment was sold for $504,000. Sold land purchased on June 1, 2013 for $1,450,000. The land cost $399,000. Jate May 1 PL Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 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 entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Debit (To record depreciation) $28,210,000 13,200,000 48,670,000 4,980,000 Purchased equipment for $2,480,000. Retired equipment that cost $491,000 when purchased on December 31, 2013. (To record sale of equipment) 15.010,000 (To record depreciation) 43,690,000 $62.680,000 (To record retirement of equipment) Credit 0000 0000000000000
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Impairment of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education