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Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $26,560,000 11,952,000 78,440,000 9,805,000 $5,883,000 14,608,000 68,635,000 $89,126,000

Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $26,560,000 11,952,000 78,440,000 9,805,000 $5,883,000 14,608,000 68,635,000 $89,126,000

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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At December 31, 2025, Flounder Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets Apr. 1 Purchased land for $4,314,200. May 1 June 1 July Dec. 1 $26,560,000 During 2026, the following selected cash transactions occurred. 31 11,952,000 78,440,000 9,805,000 $ 5,883,000 14,608,000 68,635,000 $89,126,000 Sold equipment that cost $1,176,600 when purchased on January 1, 2019. The equipment was sold for $333,370. Sold land for $3,137,600. The land cost $1,961,000. Purchased equipment for $2,157,100. Retired equipment that cost $1,372,700 when purchased on December 31, 2016. No salvage value was received.
Transcribed Image Text:At December 31, 2025, Flounder Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets Apr. 1 Purchased land for $4,314,200. May 1 June 1 July Dec. 1 $26,560,000 During 2026, the following selected cash transactions occurred. 31 11,952,000 78,440,000 9,805,000 $ 5,883,000 14,608,000 68,635,000 $89,126,000 Sold equipment that cost $1,176,600 when purchased on January 1, 2019. The equipment was sold for $333,370. Sold land for $3,137,600. The land cost $1,961,000. Purchased equipment for $2,157,100. Retired equipment that cost $1,372,700 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.) Flounder uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at the time of sale or retirement. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record depreciation on equipment sold) (To record sale of equipment) (To record depreciation on equipment retired) (To record disposal of equipment) Debit Credit
Transcribed Image Text:Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Flounder uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at the time of sale or retirement. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record depreciation on equipment sold) (To record sale of equipment) (To record depreciation on equipment retired) (To record disposal of equipment) Debit Credit
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