Question

At January 1, 2022, Carla Vista Co. reported the following property, plant, and equipment accounts:

Accumulated depreciation—buildings		$62,000,000
Accumulated depreciation—equipment		52,400,000
Buildings		97,300,000
Equipment		150,400,000
Land		21,850,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. 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.
During 2022, the following selected transactions occurred:

Apr. 1		Purchased land for $4.90 million. Paid $1.225 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.
May 1		Sold equipment for $270,000 cash. The equipment cost $2.46 million when originally purchased on January 1, 2014.
June 1		Sold land for $3.90 million. Received $780,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2016. Interest on the note is due annually each June 1.
July 1		Purchased equipment for $2.30 million cash.
Dec. 31		Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.

Depreciation Expense 82,000 Accumulated Depreciation-Equipment 82,000 (To record depreciation expense) JC J1 270,00) 2,050,000 May 1 Cash Accumulated Depreciation Equipment Loss on Disposal of Plant Assets 140,000 Equipment (To record sale of equipment) June 1 Cash JO 2 ,460,000 70.000 L1. Notes Receivable Land 1,800,000 Gain on Disposal of Land July 1 Equipment 2,300,000 cash 12.300.000

Record any adjusting entries for depreciation required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to record depreciation expense for buildings	enter a debit amount	enter a credit amount
	enter an account title to record depreciation expense for buildings	enter a debit amount	enter a credit amount
	(To record depreciation expense for buildings)
Dec. 31	enter an account title to record depreciation expense for equipment	enter a debit amount	enter a credit amount
	enter an account title to record depreciation expense for equipment	enter a debit amount	enter a credit amount
	(To record depreciation expense for equipment)

Answer 1

LE Debit credit $4,900,000 $3,675,000 #1225.000 1-May $82,000 $ 82.000 $270,000 $ 2,050,000 $140,000 $2.460,000 Answert Date Particulars | 1- APO I land . Al or To Notes payable To cash (Being to record purchase Land) Depreciation Expense Ale Dr To Accumulated Depreciation-Equipment (2460,000 foyears (412). (Being to recand depreciation expense). l-may crush - Alcoi Accumulated Depreciation - Eguupment (2460.000/royears) x8years)+$99000 Lays on sale Equipment To Equipment (Being to record sale of esipment) 1-Jun Cash Ale or Note Receivable (3.9 million - 780,000) To land To gain on sale of land Being to record sale of land) T1-Jul | Equipment Al or T To cash Being to record purchase of equipment 31-Dec Depreciation Ezpense al or To Accumulated Depreciation - Equipment ($1,000,000/10 years) (Being to record depreciation Expense) 31-Dec accumulated Depreciation Equipment file or To Equipment (Being to record disposal of quimer) $ 780,000 $ 3120000 $ 1,809000 $ 21 ooooo $ 2300000 $2300000 $ 100000 #100000 $1,000,000 $1,000 poo

bebit $2,439,500 credit $814391560 $14,809,000 $14,809,000 Adjusting Eostries! Date Particulars 31-Dec Depreciation Expense Alcor Paccumulated Depreciation - Buildings |C97300000 /40 years Crong to read depreciation expense onbúkling 31-Dec Depreciation Expense Alcor 014,694,000+ $115 000) To Accumulated Depreciation-equipment ($150,400,000~2460000 - 1000000)/10 (2300000 /10 years)2 31-Dec Interest Expense Ale or 1. To Interest payable (3615,000 X64) 02) (Being to record interest insurred beet not paid 31-Dec Interest Receivable Alcor TO Interest revenue (3420000X57)x(12) (Being to record interest earned but not received 375 $165,375 $91000 $91,000