Land 31, Swifty empany reported the following as plant assets. $28,210,000 13,200,000 48,670,000 Less: Accumulated depreciation-equipment 4,980,000 Total plant assets Buildings Less: Accumulated depreciation-buildings Equipment $ 3,980,000 15,010,000 planation 43,690,000 $62,680,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,200,000. May 1 Sold equipment that cost $840,000 when purchased on January 1, 2019. The equipment was sold for $504,000. June 1 Sold land purchased on June 1, 2013 for $1,450,000. The land cost $399,000. July 1 Purchased equipment for $2,480,000. Dec. 31 Retired equipment that cost $491,000 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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Land 31, Swifty empany reported the following as plant assets. $28,210,000 13,200,000 48,670,000 Less: Accumulated depreciation-equipment 4,980,000 Total plant assets Buildings Less: Accumulated depreciation-buildings Equipment $ 3,980,000 15,010,000 planation 43,690,000 $62,680,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,200,000. May 1 Sold equipment that cost $840,000 when purchased on January 1, 2019. The equipment was sold for $504,000. June 1 Sold land purchased on June 1, 2013 for $1,450,000. The land cost $399,000. July 1 Purchased equipment for $2,480,000. Dec. 31 Retired equipment that cost $491,000 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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Subject:- Accounting
Transcribed Image Text:At December 31, 2022, Swifty Company reported the following as plant assets.
$ 3,980,000
Land
Buildings
Less: Accumulated depreciation-buildings
Equipment
Less: Accumulated depreciation-equipment
Total plant assets
April 1
May 1
June 1
July 1
Dec. 31
During 2023, the following selected cash transactions occurred.
Purchased land for $2,200,000.
Sold equipment that cost $840,000 when purchased on January 1, 2019. The equipment was sold for $504,000.
Sold land purchased on June 1, 2013 for $1,450,000. The land cost $399,000.
Jate
May 1
PL
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. (List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in
the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Account Titles and Explanation
Debit
(To record depreciation)
$28,210,000
13,200,000
48,670,000
4,980,000
Purchased equipment for $2,480,000.
Retired equipment that cost $491,000 when purchased on December 31, 2013.
(To record sale of equipment)
15.010,000
(To record depreciation)
43,690,000
$62.680,000
(To record retirement of equipment)
Credit
0000
0000000000000
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