Record any adjusting entries for depreciation required at December 31. (Credit account titles are automatically indented when the 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 Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings (To record depreciation expense for buildings) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense for equipment) Debit 2437500 11 Credit 2437500 =

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At January 1, 2022, Sheridan Company reported the following property, plant, and equipment accounts:
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Buildings
Equipment
Land
Apr. 1
May 1
June 1
$64,150,000
The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries
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.
July 1
53,500,000
Dec. 31
97,500,000
150,200,000
During 2022, the following selected transactions occurred:
22,400,000
Show Transcribed Text
Purchased land for $4.60 million. Paid $1.150 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 $340,000 cash. The equipment cost $3.60 million when originally purchased on January 1, 2014.
Sold land for $4.32 million. Received $660,000 cash and accepted a 3-year, 5% note for the balance.
The land cost $1.20 million when purchased on June 1, 2016. Interest on the note is due annually each June 1.
Purchased equipment for $2.40 million cash.
Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.
Transcribed Image Text:At January 1, 2022, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land Apr. 1 May 1 June 1 $64,150,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries 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. July 1 53,500,000 Dec. 31 97,500,000 150,200,000 During 2022, the following selected transactions occurred: 22,400,000 Show Transcribed Text Purchased land for $4.60 million. Paid $1.150 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 $340,000 cash. The equipment cost $3.60 million when originally purchased on January 1, 2014. Sold land for $4.32 million. Received $660,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.20 million when purchased on June 1, 2016. Interest on the note is due annually each June 1. Purchased equipment for $2.40 million cash. Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.
Record any adjusting entries for depreciation required at December 31. (Credit account titles are automatically indented when the
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
Dec. 31
Dec. 31
Depreciation Expense
Accumulated Depreciation-Buildings
(To record depreciation expense for buildings)
Depreciation Expense
Accumulated Depreciation-Equipment
(To record depreciation expense for equipment)
Ű
Debit
Show Transcribed Text
2437500
SHERIDAN COMPANY
Statement of Financial Position (Partial)
Credit
Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. (List
Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Show Transcribed Text
2437500
Please answer EVERYTHING
CORRECTLY. Wrong or missing
answers will be DOWNVOTED. Thank
you! If you need to use more boxes
that what's provided, please do so; I
didn't take picture of the whole thing.
Transcribed Image Text:Record any adjusting entries for depreciation required at December 31. (Credit account titles are automatically indented when the 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 Dec. 31 Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings (To record depreciation expense for buildings) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense for equipment) Ű Debit Show Transcribed Text 2437500 SHERIDAN COMPANY Statement of Financial Position (Partial) Credit Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.) Show Transcribed Text 2437500 Please answer EVERYTHING CORRECTLY. Wrong or missing answers will be DOWNVOTED. Thank you! If you need to use more boxes that what's provided, please do so; I didn't take picture of the whole thing.
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