Question

At December 31, 2022, Bramble Corporation reported the following plant assets. Land $4,278,000 Buildings $26,530,000 17,005,050 Less: Accumulated depreciation-buildings 9,524,950 Equipment Less: Accumulated depreciation equipment 57,040,000 7,130,000 49,910,000 $63,712,950 Total plant assets During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,137,200. May 1 Sold equipment that cost $855,600 when purchased on January 1, 2016. The equipment was sold for $242,420. June 1 Sold land for $2,281,600. The land cost $1,426,000. July 1 Purchased equipment for $1,568,600. Dec. 31 Retired equipment that cost $998,200 when purchased on December 31, 2013. No salvage value was received. Your answer is correct. Journalize the transactions. Bramble uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the proble ime of sale or retirement. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date April 19 Account Titles and Explanation Land 3137200 137200 Cash 3137200 May 19 Depreciation Expense 28520 Accumulated Depreciation-Equipment 28520 (To record depreciation on equipment sold) Cash 242420 Accumulated Depreciation-Equipment 627440 Equipment L 855600 Gain on Disposal of Plant Assets 14260 June 1 Cash 2281600 Land 1426000 Gain on Disposal of Plant Assets 855600

Answer 1

Adjusting entries for depreciation is as prepared below:

Adjusting entries recorded in December
Date	Particulars	L.F	Amount ($)	Amount ($)
2018
Dec-31	Depreciation-Building		663,250
	Accumulated dep- Building			663,250
	(For depreciation on building recorded)
	26,530,000/40
Dec-31	Depreciation- Equipment		5,597,050
	Accumulated dep- Equipment			5,597,050
	(For dep on equipment recorded)
	Old equipment (57,040,000-855,600-998,200)/10
	55,186,200
	new equipment 1568600/10 = 156,860
	1,568,600/10*6/12 = 78,430

Balance Sheet

Bramble Corporation
Partial Balance Sheet
December 31, 2023
Plant Assets
Land		5,989,200
Buildings	26,530,000
less: accumulated dep buildings	17,668,300	8,861,700
Equipment	56,754,800
Less: Accumulated dep equipment	11,229,750	45,525,050
Total plant assets		60,375,950