Question

Current Attempt in Progress At December 31, 2022, Marigold Corporation reported the following plant assets. Land $ 5,073,000 Buildings $26,580,000 Less: Accumulated depreciation-buildings 20,165,175 6,414,825 Equipment 67,640,000 Less: Accumulated depreciation equipment 8,455.000 59,185,000 Total plant assets $70,672,825 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,720,200. May 1 Sold equipment that cost $1,014,600 when purchased on January 1, 2016. The equipment was sold for $287,470. June 1 Sold land for $2,705,600. The land cost $1,691,000. July 1 Purchased equipment for $1,860,100. Dec. 31 Retired equipment that cost $1,183,700 when purchased on December 31, 2013. No salvage value was received.

Answer 1

Note:- Depreciation on Building and Equipment has been calculated at the rate of 10%.

Date	Account Title & Explanation	Debit	Credit
April 1	Land	3,720,200
	To, Cash		3,720,200
May 1	Depreciation Expense	33,820
	To, Accumulated Depreciation- Equipment		33,820
May 1	Cash	287,470
	Accumulated Depreciation- Equipment	744,040
	To, Equipment		1,014,600
	To, Gain on disposal of Equipment		16,910
June 1	Cash	2,705,600
	To, land		1,691,000
	To, gain on disposal of land		1,014,600
July 1	Equipment	1,860,100
	To, Cash		1,860,100
Dec 31	Depreciation Expense	118,370
	To, Accumulated Depreciation- Equipment		118,370
	Accumulated Depreciation- Equipment	1,183,700
	To, Equipment		1,183,700
Dec 31	Depreciation Expense	6,637,175
	To, Accumulated Depreciation- Equipment		6,637,175
	Depreciation Expense	2,658,000
	To, Accumulated Depreciation- Building		2,658,000

MARIGOLD CORPORATION
Partial Balance Sheet
December 31,2023
Plant Assets
Land		7,102,200
Buildings	26,580,000
Less: Accumulated Depreciation- Building	22,823,175	3,756,825
Equipment	67,301,800
Less:- Accumulated Depreciation- Equipment	13,316,625	53,985,175