Question

PLUS L U Weygandt, Accounting Principles, 13e Helu System Announcements SURCES ent Problem 10-05A a-c (Video) At December 31, 2020, Sarasota Company reported the following as plant assets. $3,610,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation equipment Total plant assets 16,360,000 $28,180,000 11,820,000 48,740,000 4,780,000 16 43,960,000 $63,960,000 During 2021, the following selected cash transactions occurred. April 1 May 1 June 1 July 1 Dec. 31 Purchased land for $2,170,000. Sold equipment that cost $750,000 when purchased on January 1, 2017. The equipment was sold for $450,000. Sold land purchased on June 1, 2011 for $1,510,000. The land cost $393,000. Purchased equipment for $2,510,000. Retired equipment that cost $498,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. sudy Your answer is partially correct. Try again. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-yea 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 a retirement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record fournal entries in the presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation 2170000 Illand to search

Answer 1

Date	Account Title and Explanation	Debit	Credit
Apr 1	Land	2170000
	Cash		2170000
May 1	Depreciation Expense	25000
	Accumulated Depreciation-Equipment		25000
	( to record depreciation )
	Cash	450000
	Accumulated Depreciation-Equipment	325000
	Equipment		750000
	Gain on Asset Disposal		25000
	( to record sale of equipment )
June 1	Cash	1510000
	Land		393000
	Gain on Asset Disposal		1117000
July 1	Equipment	2510000
	Cash		2510000
Dec 31	Depreciation Expense	49800
	Accumulated Depreciation-Equipment		49800
	( to record depreciation )
	Accumulated Depreciation-Equipment	498000
	Equipment		498000
	( to record retirement of equipment )

​​​​​​Date	Account Title and Explanation	Debit	Credit
Dec 31	Depreciation Expense	563600
	Accumulated Depreciation-Buildings		563600
	( to record building depreciation )
Dec 31	Depreciation Expense	4949500
	Accumualted Depreciation-Equipment		4949500
	( to record equipment depreciation )

Balance Sheet at 31 December, 2021

Land		5417000
Buildings	28180000
Less : Accumulated Depreciation- Buildinds	12383600	15796400
Equipment	50002000
Less : Accumulated Depreciation- Equipment	4031800	45970200
Total Plant Assets		67183600