t December 31, 2022, Windsor, Inc. reported the following plant assets. Land $ 3,870,000 Buildings $27,080,000 Less: Accumulated depreciation—buildings 12,186,000 14,894,000 Equipment 48,520,000 Less: Accumulated depreciation—equipment 6,065,000 42,455,000 Total plant assets $61,219,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,140,000. May 1 Sold equipment that cost $930,000 when purchased on January 1, 2016. The equipment was sold for $279,000. June 1 Sold land for $1,590,000. The land cost $1,002,000. July 1 Purchased equipment for $1,102,000. Dec. 31 Retired equipment that cost $717,000 when purchased on December 31, 2013. No salvage value was received. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Windsor uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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.
t December 31, 2022, Windsor, Inc. reported the following plant assets. Land $ 3,870,000 Buildings $27,080,000 Less: Accumulated depreciation—buildings 12,186,000 14,894,000 Equipment 48,520,000 Less: Accumulated depreciation—equipment 6,065,000 42,455,000 Total plant assets $61,219,000 During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,140,000. May 1 Sold equipment that cost $930,000 when purchased on January 1, 2016. The equipment was sold for $279,000. June 1 Sold land for $1,590,000. The land cost $1,002,000. July 1 Purchased equipment for $1,102,000. Dec. 31 Retired equipment that cost $717,000 when purchased on December 31, 2013. No salvage value was received. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Windsor uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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.
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 7PB: Using the following information, A. Make the December 31 adjusting journal entry for depreciation....
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Could someone please help fill out this problem for my study guide.
At December 31, 2022, Windsor, Inc. reported the following plant assets.
During 2023, the following selected cash transactions occurred.
|
Land
|
$ 3,870,000 | |||
|
Buildings
|
$27,080,000 | |||
|
Less:
|
12,186,000 | 14,894,000 | ||
|
Equipment
|
48,520,000 | |||
|
Less: Accumulated depreciation—equipment
|
6,065,000 | 42,455,000 | ||
|
Total plant assets
|
$61,219,000 |
During 2023, the following selected cash transactions occurred.
| April 1 | Purchased land for $2,140,000. | |
| May 1 | Sold equipment that cost $930,000 when purchased on January 1, 2016. The equipment was sold for $279,000. | |
| June 1 | Sold land for $1,590,000. The land cost $1,002,000. | |
| July 1 | Purchased equipment for $1,102,000. | |
| Dec. 31 | Retired equipment that cost $717,000 when purchased on December 31, 2013. No salvage value was received. |
Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions. ) Windsor uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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.
Transcribed Image Text:(To record sale of equipment)
(To record depreciation)
(To record retirement of equipment)
Transcribed Image Text:Date
Account Titles and Explanation
Debit
(To record depreciation)
May 1
(To record sale of equipment)
Apr. 1
May 1
June 1
July 1
Dec. 31
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