Question

At December 31, 2022, Blue Corporation reported the following plant assets. Land $ 5,853,000 Buildings $26,740,000 Less: Accumulated depreciation-buildings 23,265,675 3,474,325 Equipment 78,040,000 Less: Accumulated depreciation-equipment 9,755,000 68,285,000 Total plant assets $77,612,325 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $4,292,200. May 1 Sold equipment that cost $1,170,600 when purchased on January 1, 2016. The equipment was sold for $331,670. June 1 Sold land for $3,121,600. The land cost $1,951,000. July 1 Purchased equipment for $2,146,100. Dec. 31 Retired equipment that cost $1,365,700 when purchased on December 31, 2013. No salvage value was received.

Answer 1

Journal enties 4,292,200 4,292200 pate Apoll Land To cash e Laud punleased for cash) - May Depreciation e spense CNotel) - To Accumulated dep-equipment c Tu record depreciation on - equipment sold) 858,440 858440 1,170,60 !9510 cash Dr. $331670 Accumulated sep. equipment no 858 ५५० To Equipment Arc - To Protit on sale of equipmat | C Equipment sold) Cash er 73,121600 To Land To protiton sale of land I sold Laud) Tunel 1,951,000 1,17060 | $2,146,100 Jull $2,14510 ó Equipment B To cash e equipment Purchased) Pepreciation expense-equipment To Accumulated dep equipos e Pepreciation record on equipment retired | 136,570 I Decial | 136570

Pr $1,365,00 Peasi 1,365,76 Accumulated dep. epuipment 1. To Equipment I c equipment retired) Adjusting Entries 6,68500 Dec.31 66850 | Depreciation expense building B To Accumulald depreciation -Gweding c Depreciation recorded on 1 building (Note 3) 7,657675 pecial | Depreciation expense - Equipment Pr|7657,675 To Accumulated dep-equipment Ce prepreciation recorded on equipment BLUE CORPORATION land C5,8530W-1,951, dou) 1 39,02,000 Buildings | 2,805, 825 26,740,600 Less:- Accumulated depreciation.. 23,934,975 Building Equipment 77,649,800 Less: - Accomulated depo-equipment 17412,675 Total Plaut Assets 60,237,125 66,945.oso

Note I Depreciation on equiponent soed cost of equipment on Jan 1, 2016 = 1,170,6 Annual depreciation = _117060 . 117060 Dep for Jan! 2016 to Jan 12023 = 117060X7 > 819,420 Pep for Jan, 2023 to date of sale cmay ,) = 117000 X Y 12 Hana = 39020 Total - Accumulated clep on equipment solda 819420739020 - osoy yo n with - Note 2 pep on equipment concelled cost of equipment on Peas! 2013= 1,365,76 Date of cancellation Rea 3) 2023 C Gap = 10 years which is - useful life so full depreciation is= 1,3657co

Notes : Depreciation in Guidings ... cost of buildings = 26,7400w - useful like a goyear 2679oou Pep = 24668so Note 4:0. Depreciation on equipment Cost of equipment as on Dec 31 2022 at gougou Lessa fece equipment sold during 202]a (1170,000) ( 1170,000+ (esse cost of equipment cancelled (2-23)= ($4,365,76) 755037 Depreciation on old equipment New equipment Purchase in July, I costing = 2,146,100 dep on new equipment = 2,1461a (for 6 month) Jary to dee 10 x 1 2 75503700 To = 7550370 $107.305 Total accumulated dep = 7,55,0370+ 107,345 = 7,659175 Toral value o equiment in handa 7,550,370 42,140,100 - 77,649,860

Accumulated depreciates, building Note 5 :- 1. By balold 1 23,265,675 By depreciation - 6,6850 eaponk Tobal'eld | 23934175 | 29,939, 155 23984,186 Note 6: Accamulated dep an equipment Dep at the beginning 9755,00 Addia depreciation anpa 7,657,675 17,412,675