Question

can anyone help me to solve p9.5

2022 Instruc 2023 a. Prep 2024 b. Prep c. Prep P9.5 (LO 2, 3, 5) At December 31, 2019, Jimenez Enterprises reported the following as plant assets. € 3,000,000 14.400,000 Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation equipment Total plant assets €26,500,000 12,100,000 40,000,000 5,000,000 P9.8 (LO intangibl. 1. Bue men €60 tion 2. On J Buel good 35,000,000 €52,400,000 During 2020, the following selected cash transactions Aprill Purchased land for €2.200.000 May 1 Sold equipment that cost €750,000 when purchased on January 1, 2016. The equipment was sold for €466,000. June | Sold land purchased on June 1, 2010 for €1,800,000. The land cost €300,000. July 1 Purchased equipment for €2,450,000. Dec. 31 Retired equipment that cost €500,000 when purchased on December 31, 2010. No residual value was received. Instructi Prepare all yet beend P9.9 (LO involved i straight-lin Instructions a. 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 residual value. The equipment is estimated to have a 10-year useful life and no residual value. Update depreciation on assets dis- posed of at the time of sale or retirement. b. Record adjusting entries for depreciation for 2020. c. Prepare the plant assets section of Jimenez's statement of financial position at December 31, 2020 Instruction .. For eac b. Based in using 1.6 (L03) Yount Towing has equipment that cost €50,000 and that has been depreciated €22.000 Instructions Record the disposal under the following assumptions, It was scrapped as having no value. Sempre!

Answer 1

Date	General Journal	Debit	Credit
Apr 1	Land	€           2,200,000
	Cash		€           2,200,000
	(To Record Purchase of land.)
May 1	Depreciation expense - equipment	€                 25,000
	Accumulated Depreciation - equipment		€                 25,000
	(To record Depreciation on equipment sold.) (750000/10=75000 per year) (Jan to Apr = 4 Months) (75000*4/12)
May 1	Cash	€               466,000
	Accumulated Depreciation - equipment (Jan 2016 to Dec 2019 = 4 years) ((75000*4)+25000)	€               325,000
	Gain on disposal (sale) of equipment (466000-(750000-325000))		€                 41,000
	Equipment		€               750,000
	(To record sale of equipment.)
June 1	Cash	€           1,800,000
	Gain on disposal (sale) of land (1800000-300000)		€           1,500,000
	Land		€               300,000
	(To record sale of Land)
July 1	Equipment	€           2,450,000
	Cash		€           2,450,000
	(To Record Purchase of Equipment.)
Dec 31	Depreciation expense - equipment	€                 50,000
	Accumulated Depreciation - equipment		€                 50,000
	(To record Depreciation on equipment retired.) (500000/10)
Dec 31	Accumulated Depreciation - equipment	€               500,000
	equipment		€               500,000
	(To record equipment retired.)

Adjustment entries
Date	Accounts title & explanation	Debit	Credit
Dec 31	Accumulated Depreciation - building	€               662,500
	building		€               662,500
	(To record Depreciation on building.)
Dec 31	Accumulated Depreciation - equipment	€           3,997,500
	equipment		€           3,997,500
	(To record Depreciation on equipment.)

Partial balance sheet
At December 31, 2020
Plant assets
Land			€           4,900,000
Buildings		€         26,500,000
Less
Accumulated Depreciation - building		€         12,762,500	€         13,737,500
Equipment		€         41,200,000
Less
Accumulated Depreciation - Equipment		€           8,247,500	€         32,952,500
Total Plant assets			€         51,590,000

Calculation parts

Assets section
Date	Land	Buildings	Accumulated depreciation - Buildings	Equipment	Accumulated Depreciation - equipment
						Beginning	€         3,000,000	€         26,500,000	€       12,100,000	€         40,000,000	€        5,000,000
						Purchase of land	€         2,200,000
Depreciation on equipment sold					€              25,000
equipment sold				€             (750,000)	€         (325,000)
Land Sold	€          (300,000)
Purchase of equipment				€           2,450,000
Depreciation on equipment retired					€              50,000
Equipment retired				€             (500,000)	€         (500,000)
Balance Before Adjustment	€         4,900,000	€         26,500,000	€       12,100,000	€         41,200,000	€        4,250,000
Depreciation adjustment			€             662,500		€        3,997,500
Balance after adjustment	€         4,900,000	€         26,500,000	€       12,762,500	€         41,200,000	€        8,247,500
Depreciation on building (26500000/40)					€            662,500
Balance Before Adjustment for Equipment			€       41,200,000
Less: Addition during year			€         2,450,000	€               245,000	€            122,500
Balance for Beginning			€       38,750,000	€           3,875,000
Balance for Beginning (38750000/10)				€           3,875,000
Addition during year (July to Dec = 6 months) (2450000/10=245000) (245000*6/12)				€               122,500
Depreciation on equipment					€        3,997,500