Traded in equipment with accumulated depreciation of $68,000 (cost of $132,000) for similar new equipment with a cash cost of $182,000. Received a trade-in allowance of $76,000 on the old equipment and paid $106,000 in cash. Jan 3 Jun 30 Sold a building that had a cost of $635,000 and had accumulated depreciation of $130,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $295,000. Tarrier received $120,000 cash and a $380,750 note receivable. Oct 31 Purchased land and a building for a single price of $340,000 cash. An independent appraisal valued the land at $108,900 and the building at $254,100. Dec 31 Recorded depreciation as follows: Equipment has an expected useful life of five years and an estimated residual value of 12% of cost. Depreciation is computed using the double-declining-balance method. Depreciation on buildings is computed using the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost.
Traded in equipment with accumulated depreciation of $68,000 (cost of $132,000) for similar new equipment with a cash cost of $182,000. Received a trade-in allowance of $76,000 on the old equipment and paid $106,000 in cash. Jan 3 Jun 30 Sold a building that had a cost of $635,000 and had accumulated depreciation of $130,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $295,000. Tarrier received $120,000 cash and a $380,750 note receivable. Oct 31 Purchased land and a building for a single price of $340,000 cash. An independent appraisal valued the land at $108,900 and the building at $254,100. Dec 31 Recorded depreciation as follows: Equipment has an expected useful life of five years and an estimated residual value of 12% of cost. Depreciation is computed using the double-declining-balance method. Depreciation on buildings is computed using the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.4: Disposing Of Plant Assets
Problem 1WT
Related questions
Question
![Tarrier, Inc., has the following plant asset accounts: Land, Buldings, and Equipment, with a separate accumulated depreciation account for each of these except Land
Tarrier completed the following transactions
O (Click the icon to view the transactions.)
Read the requirement.
Requirement
- X
1. Record the transactions in Tarrier's journal.
in T
journal er
sh cost of
ated
nt a
Print
Done
Accor](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fded6db92-57ba-49bd-8e03-f1d0c13456b7%2F9dcb9e4c-9d29-4f58-b5ad-6e121f4c6bca%2Fbfkc9b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tarrier, Inc., has the following plant asset accounts: Land, Buldings, and Equipment, with a separate accumulated depreciation account for each of these except Land
Tarrier completed the following transactions
O (Click the icon to view the transactions.)
Read the requirement.
Requirement
- X
1. Record the transactions in Tarrier's journal.
in T
journal er
sh cost of
ated
nt a
Print
Done
Accor
![Traded in equipment with accumulated depreciation of $68,000 (cost of $132,000) for
similar new equipment with a cash cost of $182,000. Received a trade-in allowance
of $76,000 on the old equipment and paid $106,000 in cash.
Jun 30 Sold a building that had a cost of $635,000 and had accumulated depreciation of
$130,000 through December 31 of the preceding year. Depreciation is computed on
a straight-line basis. The building has a 40-year useful life and a residual value of
$295,000. Tarrier received $120,000 cash and a $380,750 note receivable.
Oct 31 Purchased land and a building for a single price of $340,000 cash. An independent
appraisal valued the land at $108,900 and the building at $254,100.
Jan 3
Dec 31 Recorded depreciation as follows:
Equipment has an expected useful life of five years and an estimated residual value
of 12% of cost. Depreciation is computed using the double-declining-balance
method.
Depreciation on buildings is computed using the straight-line method. The new
building carries a 40-year useful life and a residual value equal to 10% of its cost.
Den](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fded6db92-57ba-49bd-8e03-f1d0c13456b7%2F9dcb9e4c-9d29-4f58-b5ad-6e121f4c6bca%2F4p2bcyf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Traded in equipment with accumulated depreciation of $68,000 (cost of $132,000) for
similar new equipment with a cash cost of $182,000. Received a trade-in allowance
of $76,000 on the old equipment and paid $106,000 in cash.
Jun 30 Sold a building that had a cost of $635,000 and had accumulated depreciation of
$130,000 through December 31 of the preceding year. Depreciation is computed on
a straight-line basis. The building has a 40-year useful life and a residual value of
$295,000. Tarrier received $120,000 cash and a $380,750 note receivable.
Oct 31 Purchased land and a building for a single price of $340,000 cash. An independent
appraisal valued the land at $108,900 and the building at $254,100.
Jan 3
Dec 31 Recorded depreciation as follows:
Equipment has an expected useful life of five years and an estimated residual value
of 12% of cost. Depreciation is computed using the double-declining-balance
method.
Depreciation on buildings is computed using the straight-line method. The new
building carries a 40-year useful life and a residual value equal to 10% of its cost.
Den
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,