The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment Machine 101 102 103 Cost $ 61,200 72,800 23,800 $ 672,000 (160,000) 157,800 The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $32,000 for the building is anticipated. The equipment is comprised of the following three machines: Date Acquired 1/1/2021 6/30/2022 9/1/2023 $ 112,000 512,000 Residual Life (in Value Years) $ 6,200 10 7,200 8 2,200 9 ? ? The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $47,500. Early in 2024, the useful life of machine 101 was revised to seven years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated depreciation on the equipment at December 31, 2023. 2. Prepare the journal entry to record 2024 depreciation on machine 102 up to the date of sale. 3. Calculate the gain or loss on the sale of machine 102. 4. Prepare the journal entry for the sale of machine 102. 5. Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment.
The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment Machine 101 102 103 Cost $ 61,200 72,800 23,800 $ 672,000 (160,000) 157,800 The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $32,000 for the building is anticipated. The equipment is comprised of the following three machines: Date Acquired 1/1/2021 6/30/2022 9/1/2023 $ 112,000 512,000 Residual Life (in Value Years) $ 6,200 10 7,200 8 2,200 9 ? ? The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $47,500. Early in 2024, the useful life of machine 101 was revised to seven years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated depreciation on the equipment at December 31, 2023. 2. Prepare the journal entry to record 2024 depreciation on machine 102 up to the date of sale. 3. Calculate the gain or loss on the sale of machine 102. 4. Prepare the journal entry for the sale of machine 102. 5. Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following:
Property, plant, and equipment:
Land
Building
Less: Accumulated depreciation
Equipment
Less: Accumulated depreciation
Total property, plant, and equipment
Machine
101
102
103
Cost
$ 61,200
72,800
23,800
The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $32,000 for
the building is anticipated.
The equipment is comprised of the following three machines:
Date Acquired
1/1/2021
6/30/2022
9/1/2023
Residual
Value
$ 6,200
7,200
2,200
$ 672,000
(160,000)
157,800
?
8
9
Life (in
Years)
10
$ 112,000
512,000
?
The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $47,500.
Early in 2024, the useful life of machine 101 was revised to seven years in total, and the residual value was revised to zero.
Required:
1. Calculate the accumulated depreciation on the equipment at December 31, 2023.
2. Prepare the journal entry to record 2024 depreciation on machine 102 up to the date of sale.
3. Calculate the gain or loss on the sale of machine 102.
4. Prepare the journal entry for the sale of machine 102.
5. Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment.
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