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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 $ 120,000 $840,000 (200,000) 640,000 180,000 ? ? ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. The equipment is comprised of the following three machines: Machine 101 102 103 Cost $ 70,000 80,000 30,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 Residual Value $ 7,000 8,000 3,000 Life (in Years) 10 8 9 The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $52,500. 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. ✓ Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction 1 General Journal Depreciation expense Accumulated depreciation-building 2 2 Depreciation expense Accumulated depreciation-equipment Debit 28,000 × Credit 28,000 ☑ 15,775 15,775

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 $ 120,000 $840,000 (200,000) 640,000 180,000 ? ? ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. The equipment is comprised of the following three machines: Machine 101 102 103 Cost $ 70,000 80,000 30,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 Residual Value $ 7,000 8,000 3,000 Life (in Years) 10 8 9 The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $52,500. 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. ✓ Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction 1 General Journal Depreciation expense Accumulated depreciation-building 2 2 Depreciation expense Accumulated depreciation-equipment Debit 28,000 × Credit 28,000 ☑ 15,775 15,775

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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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 $ 120,000 $840,000 (200,000) 640,000 180,000 ? ? ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. The equipment is comprised of the following three machines: Machine 101 102 103 Cost $ 70,000 80,000 30,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 Residual Value $ 7,000 8,000 3,000 Life (in Years) 10 8 9 The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $52,500. 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. ✓ Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction 1 General Journal Depreciation expense Accumulated depreciation-building 2 2 Depreciation expense Accumulated depreciation-equipment Debit 28,000 × Credit 28,000 ☑ 15,775 15,775
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 $ 120,000 $840,000 (200,000) 640,000 180,000 ? ? ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. The equipment is comprised of the following three machines: Machine 101 102 103 Cost $ 70,000 80,000 30,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 Residual Value $ 7,000 8,000 3,000 Life (in Years) 10 8 9 The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $52,500. 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. ✓ Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction 1 General Journal Depreciation expense Accumulated depreciation-building 2 2 Depreciation expense Accumulated depreciation-equipment Debit 28,000 × Credit 28,000 ☑ 15,775 15,775
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