ecember 31, 2022, Swifty Company reported the following as plant assets. Land $ 4,080,000 Buildings $28,360,000 Less: Accumulated depreciation—buildings 12,210,000 16,150,000 Equipment 48,670,000 Less: Accumulated depreciation—equipment 5,160,000 43,510,000 Total plant assets $63,740,000 During 2023, the following selected cash tran
ecember 31, 2022, Swifty Company reported the following as plant assets. Land $ 4,080,000 Buildings $28,360,000 Less: Accumulated depreciation—buildings 12,210,000 16,150,000 Equipment 48,670,000 Less: Accumulated depreciation—equipment 5,160,000 43,510,000 Total plant assets $63,740,000 During 2023, the following selected cash tran
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 41E: Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets...
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Question
At December 31, 2022, Swifty Company reported the following as plant assets.
Land | $ 4,080,000 | |||
Buildings | $28,360,000 | |||
Less: |
12,210,000 | 16,150,000 | ||
Equipment | 48,670,000 | |||
Less: Accumulated depreciation—equipment | 5,160,000 | 43,510,000 | ||
Total plant assets | $63,740,000 |
During 2023, the following selected cash transactions occurred.
April 1 | Purchased land for $2,000,000. | |
May 1 | Sold equipment that cost $780,000 when purchased on January 1, 2019. The equipment was sold for $468,000. | |
June 1 | Sold land purchased on June 1, 2013 for $1,410,000. The land cost $392,000. | |
July 1 | Purchased equipment for $2,430,000. | |
Dec. 31 | Retired equipment that cost $502,000 when purchased on December 31, 2013. |
Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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
Record
Prepare the plant assets section of Swifty’s balance sheet at December 31, 2023.
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