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(A) Journalize the above transactions.  (B) Record adjusting entries for 2018 depreciation.  (C) Prepare the plant's asset section of the company's balance sheet as at December 31, 2018.

(A) Journalize the above transactions.  (B) Record adjusting entries for 2018 depreciation.  (C) Prepare the plant's asset section of the company's balance sheet as at December 31, 2018.

Intermediate Accounting: Reporting And Analysis
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...
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(A) Journalize the above transactions. 

(B) Record adjusting entries for 2018 depreciation. 

(C) Prepare the plant's asset section of the company's balance sheet as at December 31, 2018.

At December 31, 2017, Kisses Corporation reported the following plant assets: Land $3,000,000 Buildings Less: Accumulated Depreciation Buildings Equipment Less: Accumulated Depreciation Equipment $28,500,000 12,100,000 48,000,000 5,000,000 16,400,000 43,000,000 $62.400,000 Total Plant Assets During 2018, the following transactions occurred: April 1", purchased land for $2,630,000. • May 1", sold equipment that cost $750,000 when it was purchased on January 1*, 2013. The equipment was sold for $370,000. • June 1*, sold land purchased on June 1, 2005 for $1,800,000. The land cost $800,000 • July 1*, Purchased equipment for $800,000 • December 31", Retired fully depreciated equipment that cost $470,000 when purchased on December 31, 2008. No salvage value was received Additional Information: • The company uses straight line depreciation. The buildings are estimated to have a 40 year life and no salvage value. The equipment is estimated to have a 10 year life and no salvage value. • Depreciation is updated at the time of sale or retirement.
Transcribed Image Text:At December 31, 2017, Kisses Corporation reported the following plant assets: Land $3,000,000 Buildings Less: Accumulated Depreciation Buildings Equipment Less: Accumulated Depreciation Equipment $28,500,000 12,100,000 48,000,000 5,000,000 16,400,000 43,000,000 $62.400,000 Total Plant Assets During 2018, the following transactions occurred: April 1", purchased land for $2,630,000. • May 1", sold equipment that cost $750,000 when it was purchased on January 1*, 2013. The equipment was sold for $370,000. • June 1*, sold land purchased on June 1, 2005 for $1,800,000. The land cost $800,000 • July 1*, Purchased equipment for $800,000 • December 31", Retired fully depreciated equipment that cost $470,000 when purchased on December 31, 2008. No salvage value was received Additional Information: • The company uses straight line depreciation. The buildings are estimated to have a 40 year life and no salvage value. The equipment is estimated to have a 10 year life and no salvage value. • Depreciation is updated at the time of sale or retirement.
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