MaySold equipment for $280,000 cash. The equipment cost $2,833,800 when originally purchased on January 1, 2013.Sold land for $3,566,400. Received $848,400 cash and accepteda three-year, 5% note for the balance. The landcost $1,400,000 when purchased on June 1, 2015. Interest on the note is due annually each June 1.June1July1Purchased equipment for $2,300,000 cash.Dec.Retired equipment that cost $1,100,000 when purchased on January 1, 2012. No proceeds were received.3131Tested land for impairment and found that its fair value was $20,800,000.(a)Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.Round answers to 0 decimal places, eg. 5,275. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCreditW6.O00F7F8F10FIIF1F2F4F5F6$%&*.3568く%23 At January 1, 2021, Carla Vista Limited reported the following property, plant, and equipment accounts:Accumulated depreciation-buildings$64,500,000Accumulated depreciation-equipment52,300,000Buildings95,200,000Equipment149,400,000Land20,800,000The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entriesannually. The buildings are estimated to have a 40-year useful life and no residual value; the equipment is estimated to have a 10-yearuseful life and no residual value.During 2021, the following selected transactions occurred:Purchased land for $4,390,000. Paid $1,180,000 cash and issued a three-year, 6% mortgage payable for thebalance. Interest on the mortgage is payable annually each April 1.Apr.1.Sold eguinment for $280000cash The eguinment cost $2833 800an originalynurchased.on lanuary 12013May44F9F10FI1FB000 F4F5F7%&%24

Journal entries is a tool for recording business transactions into accounting records.

Record the above transactions. (List all debit entries before credit entries. 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. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Record the above transactions. (List all debit entries before credit entries. 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. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...

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Similar questions

Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.
During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
At January 1, 2021, Cullumber Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $59,500,000 Accumulated depreciation—equipment 50,700,000 Buildings 99,300,000 Equipment 140,000,000 Land 20,700,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value.During 2021, the following selected transactions occurred: Apr. 1 Purchased land for $4,240,000. Paid $1,190,000 cash and issued a three-year, 7% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. May 1 Sold equipment for $330,000 cash. The equipment cost $2,562,000 when originally purchased on January 1, 2013. June 1 Sold land for $3,823,100.…
Astro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had $120,000 of accumulated depreciation as of January 1, 2021. The equipment is being annually depreciated at an amount of $24,000. Required: Prepare the necessary journal entries to: A. Update the depreciation for the equipment. B. Record the sale of the equipment.
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Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company tests for impairment and determines that the equipment's fair value is S108,400. Calculate the amount of the impairment loss, if any.
CC inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $15,700 $486,700 Building estimated service life, 30 years; no salvage value $711k The equipment has been depreciated using the sum-of-the-years'-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. (a) Prepare the general journal entry to record depreciation expenses for equipment in 2021. (b) Prepare the journal entry to record depreciation expenses for the building in 2021. (Round answers to 0 decimal places.)