Question

PLEASE FILL IN MISSING ANSWERS.

At December 31, 2020, Riverbed Company reported the following as plant assets. Land $ 4,180,000 Buildings $27,310,000 Less: Accumulated depreciation—buildings 12,890,000 14,420,000 Equipment 47,470,000 Less: Accumulated depreciation—equipment 4,530,000 42,940,000 Total plant assets $61,540,000 During 2021, the following selected cash transactions occurred. April 1 Purchased land for $2,060,000. May 1 Sold equipment that cost $1,050,000 when purchased on January 1, 2017. The equipment was sold for $630,000. June 1 Sold land purchased on June 1, 2011 for $1,520,000. The land cost $400,000. July 1 Purchased equipment for $2,540,000. Dec. 31 Retired equipment that cost $494,000 when purchased on December 31, 2011. The company received no proceeds related to salvage.

Date Account Titles aha Explanation Debit Credit Apr. 1 ||Land 2060000 Cash 2060000 May 1 Depreciation Expense 35000 Accumulated Depreciation-Equipment 35000 (To record depreciation) May 1 Cash T 6300001 Accumulated Depreciation-Equipment 455000 2 Equipment 1050000 Gain on Disposal of Plant Assets 35000 (To record sale of equipment) June 1 Cash i 1520000 1520000 Gain on Disposal of Plant Assets 1120000 Land 400000 July 1 1 Equipment 2540000 Cash T T 2540000

Answer 1

Credit Debit $2.060.000 1) Date Account Titles and Explanation Apr.1 Land Cash (To record land purchased) $2.060.000 2) $35.000 May 1 Depreciation expense [($1,050,000 / 10 years) * 4/12] Accumulated depreciation Equipment (To record depreciation on equipment sold) $35,000 3) $630,000 $455,000 May 1 Cash Accumulated depreciation Cost of equipment Gain on sale of equipment (To record sale of equipment) $1,050,000 $35,000 Workings: Cost of equipment Less: Accumulated depreciation [($1,050.000 / 10 years) * 4 years + $35,000] Book value Proceeds from sale Gain on Disposal of plant Assets (S630,000 - $595,000) $1.050.000 $455,000 $595,000 $630,000 $35,000 4) $1,520,000 June 1 Cash Cost of land Gain on Disposal of plant Assets (To record sale of land) $400.000 $1.120,000 5) $2.540.000 July.1 Equipment Cash (To record equipment purchased) $2.540.000 6) $49.400 Dec. 31 Depreciation expense [(S494.000 / 10 years) * 1 year Accumulated depreciation-Equipment (To record depreciation on equipment retired) $49,400 7) $494.000 Dec. 31 Accumulated depreciation Equipment (To record retired of equipment) $494.000 Credit Adjusting Entries: Date Account Titles and Explanation Dec. 31 Depreciation expense Accumulated depreciation-building (To record depreciation on building) Debit $682.750 1) $682.750 2) $4.719,600 Dec. 31 Depreciation expense Accumulated depreciation equipment (To record depreciation on equipment) $4,719,600 Workings: Depreciation expense-building: [($27,310.000 / 40 years) * 1 year $682.750 $4,592,600 Depreciation expense-equipment: [($47,470,000 - $1,050,000 - $494.000] / 10 years [($2,540,000 / 10 years) * 6/12] $127.000 $4,719,600 AYAYAI CORPORATION Partial Balance Sheet December 31, 2023 Plant Assets Land ($4.180,000+ $2.060,000 - $400,000) $5.840.000 Building $27,310,000 Less: Accumulated depreciation-building $13,572.750 $13,737,250 Equipment $48.466.000 Less: Accumulated depreciation equipment $8.385,000 $40.081,000 Total Plant Assets $59,658,250 Workings: Equipment $48,466,000 [(S47,470,000 - $1,050,000 + $2,540,000 - $494,000] Accumulated depreciation equipment $8.385,000 [$4,530,000+ $35,000 - $455,000+ $49,400 - $494,000+ $4.719.600]