Question

At December 31, 2022, Blue Corporation reported the following plant assets. Land $4,548,000 Buildings $26,520,000 18,078,300 8,441,700 Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation equipment Total plant assets 60,640,000 7,580,000 53,060,000 $66,049,700 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,335,200. May 1 Sold equipment that cost $909.600 when purchased on January 1, 2016. The equipment was sold for $257.720. June 1 Sold land for $2.425,600. The land cost $1.516,000. July 1 Purchased equipment for $1,667.600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2013. No salvage value was received.

Answer 1

date account titles and explanation debit credit 01-Apr $3,335,200 land cash (to record purchase) $3,335,200 01-May $30,320 depreciation expense accumulated depreciation equipment (to record depreciation) $30,320 $257,720 $667,040 01-May cash accumulated depreciation-equipment gain on sale of equipment equipment (to record sale) $15,160 $909,600 01-Jun $2,425,600 cash land gain on sale of land (to record sale) $1,516,000 $909,600 01-Jul $1,667,600 equipment cash (to record purchase) $1,667,600 31-Dec $106,120 depreciation expense accumulated depreciation equipment (to record depreciation) $106,120

date account titles and explanation debit credit 31-Dec accumulated depreciation-equipment | $1,061,200 equipment (to record disposal) $1,061,200 adjusting enties 31-Dec $663,000 depreciation expense accumulated depreciation-buildings (to record depreciation) $663,000 31-Dec $5,950,300 depreciation expense accumulated depreciation equipment (to record depreciation) $5,950,300