t December 31, 2022, Windsor, Inc. reported the following plant assets. Land       $ 3,870,000 Buildings   $27,080,000     Less: Accumulated depreciation—buildings   12,186,000   14,894,000 Equipment   48,520,000     Less: Accumulated depreciation—equipment   6,065,000   42,455,000     Total plant assets       $61,219,000 During 2023, the following selected cash transactions occurred. April 1   Purchased land for $2,140,000. May 1   Sold equipment that cost $930,000 when purchased on January 1, 2016. The equipment was sold for $279,000. June 1   Sold land for $1,590,000. The land cost $1,002,000. July 1   Purchased equipment for $1,102,000. Dec. 31   Retired equipment that cost $717,000 when purchased on December 31, 2013. No salvage value was received.   Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Windsor 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.

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Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Could someone please help fill out this problem for my study guide.
 
At December 31, 2022, Windsor, Inc. reported the following plant assets.

Land
      $ 3,870,000
Buildings
  $27,080,000    
Less: Accumulated depreciation—buildings
  12,186,000   14,894,000
Equipment
  48,520,000    
Less: Accumulated depreciation—equipment
  6,065,000   42,455,000
    Total plant assets
      $61,219,000

During 2023, the following selected cash transactions occurred.

April 1   Purchased land for $2,140,000.
May 1   Sold equipment that cost $930,000 when purchased on January 1, 2016. The equipment was sold for $279,000.
June 1   Sold land for $1,590,000. The land cost $1,002,000.
July 1   Purchased equipment for $1,102,000.
Dec. 31   Retired equipment that cost $717,000 when purchased on December 31, 2013. No salvage value was received.
 
Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Windsor 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.
 
 
**Recording Transactions for Equipment**

1. **To Record Sale of Equipment:**

   - Description: This section is used to document financial transactions related to the sale of equipment. Fields are provided for detailed entries.
   
   - Diagram Details:
     - There are four rows, each with two fields to input details like account name and amount in a debit and credit format.
     - Each row includes a dropdown menu, likely to select account types or categories.

2. **To Record Depreciation:**

   - Description: This section is for recording depreciation expenses, reflecting the reduction in value of equipment over time.

   - Diagram Details:
     - Includes two rows with fields for account entries related to depreciation amounts.

3. **To Record Retirement of Equipment:**

   - Description: Used for documenting the removal or retirement of equipment from service, noting any related financial impact.

   - Diagram Details: 
     - Provides space for additional financial entries corresponding to retirement transactions.

This structure helps in maintaining accurate financial records of transactions associated with equipment in an educational or business context.
Transcribed Image Text:**Recording Transactions for Equipment** 1. **To Record Sale of Equipment:** - Description: This section is used to document financial transactions related to the sale of equipment. Fields are provided for detailed entries. - Diagram Details: - There are four rows, each with two fields to input details like account name and amount in a debit and credit format. - Each row includes a dropdown menu, likely to select account types or categories. 2. **To Record Depreciation:** - Description: This section is for recording depreciation expenses, reflecting the reduction in value of equipment over time. - Diagram Details: - Includes two rows with fields for account entries related to depreciation amounts. 3. **To Record Retirement of Equipment:** - Description: Used for documenting the removal or retirement of equipment from service, noting any related financial impact. - Diagram Details: - Provides space for additional financial entries corresponding to retirement transactions. This structure helps in maintaining accurate financial records of transactions associated with equipment in an educational or business context.
The image shows a section of a journal entry template used in accounting. It consists of three main columns: 

1. **Date**: This column includes drop-down menus for selecting specific dates. The example shows a drop-down with options for April 1, May 1, June 1, July 1, and December 31, with May 1 selected.

2. **Account Titles and Explanation**: This column is for detailing the accounts involved in the transaction and providing brief descriptions. It includes text prompts such as "To record depreciation" and "To record sale of equipment."

3. **Debit**: This column is reserved for entering the debit amounts associated with the transaction.

The template includes multiple empty rows for entering various transactions, and arrows next to the fields indicate that more selections or entries can be made. This format is typically used to organize and record financial transactions systematically.
Transcribed Image Text:The image shows a section of a journal entry template used in accounting. It consists of three main columns: 1. **Date**: This column includes drop-down menus for selecting specific dates. The example shows a drop-down with options for April 1, May 1, June 1, July 1, and December 31, with May 1 selected. 2. **Account Titles and Explanation**: This column is for detailing the accounts involved in the transaction and providing brief descriptions. It includes text prompts such as "To record depreciation" and "To record sale of equipment." 3. **Debit**: This column is reserved for entering the debit amounts associated with the transaction. The template includes multiple empty rows for entering various transactions, and arrows next to the fields indicate that more selections or entries can be made. This format is typically used to organize and record financial transactions systematically.
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