Question

*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equiTILUUIU UU UUU UUSALUS. (Lieut accountries are automatically indented when the amount is entered. Do not indent manually. If(To record the retirement of equipment) (To record impairment loss)

0 0
Add a comment Improve this question Transcribed image text
Answer #1
Date Journal Entry Debit Credit
Apr-18 LAND $        4,310,000
CASH $        1,120,000
7% MORTGAGE PAYABLE $        3,190,000
31-12-18 NO DEPRECIATION IS CHARGED ON LAND
01-05-18 CASH $            310,000
ACCUMULATED DEPRECIATION- EQUIPMENT $        1,908,720
LOSS ON SALE OF EQUIPMENT $            384,080
EQUIPMENT $        2,602,800
01-06-18 CASH $            942,600
5% NOTE RECEIVABLE $        2,822,400
LAND $        1,400,000
GAIN ON SALE OF EQUIPMENT $        2,365,000
01-07-18 EQUIPMENT $        2,200,000
CASH $        2,200,000
31-12-18 LOSS ON RETIREMENT $            110,000
ACCUMULATED DEPRECIATION- EQUIPMENT $            990,000
EQUIPMENT $        1,100,000
31-12-18 IMPAIRMENT LOSS $        2,910,000
LAND $        2,910,000

calculations:

VALUE OF EQUIPMENT ON 1/5/18
PURCHASE COST ON 1/1/10 $        2,602,800
DEPRECIATION $            260,280
=2602800/10
ACCUMULATED DEPRECIATION- EQUIPMENT ON 1/5/18
ON 1/1/18 (260280 * 7) $        1,821,960
ON 1/5/18 (260280 /12*4) $              86,760
$        1,908,720
VALUE OF EQUIPMENT ON 31/12/18
PURCHASE COST ON 1/1/09 $        1,100,000
DEPRECIATION $            110,000
=1100000/10
ACCUMULATED DEPRECIATION- EQUIPMENT ON 1/5/18
ON 31-12-2018 (110000* 9) $            990,000
$            990,000
LAND CLOSING VALUE ON 31/12/18
OPENING VALUE $      20,900,000
PURCHASES $        4,310,000
SALES $      (1,400,000)
CLOSING VALUE $      23,810,000
RECOVERABLE VALUE $      20,900,000
IMPAIRMENT LOSS $        2,910,000
Add a comment
Know the answer?
Add Answer to:
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • *Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property,...

    *Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $67,700,000 49,400,000 90,500,000 145,400,000 20,900,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual...

  • Question 2 At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts:...

    Question 2 At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $67,700,000 Accumulated depreciation equipment 56,500,000 Buildings 94,700,000 Equipment 157,500,000 21,000,000 Land The company uses straight line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful and no residual value; the equipment is estimated to have a 10-year useful life and no residual value During 2018,...

  • Please help me out with this:) Problem 9-8A a-c (Part Level Submission) At January 1, 2018,...

    Please help me out with this:) Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Ivanhoe Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $60,900,000 53,800,000 96,400,000 146,000,000 21,100,000 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 residual value; the equipment is estimated to have a...

  • At January 1, 2018, Sunland Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...

    At January 1, 2018, Sunland Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $59,500,000 Accumulated depreciation—equipment 57,100,000 Buildings 102,500,000 Equipment 152,600,000 Land 20,600,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the following selected...

  • Question 2 At January 1, 2018, Crane Limited reported the following property, plant, and equipment accounts:...

    Question 2 At January 1, 2018, Crane Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $62,800,000 52,600,000 89,700,000 162,600,000 18,100,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the...

  • Question 2 At January 1, 2018, Crane Limited reported the following property, plant, and equipment accounts:...

    Question 2 At January 1, 2018, Crane Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation equipment Buildings Equipment $62,800,000 52,600,000 89,700,000 162,600,000 18,100,000 Land 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018,...

  • At January 1, 2018, Cullumber Limited reported the following property, plant, and equipment accounts: Accumulated dep...

    At January 1, 2018, Cullumber Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $62,300,000 Accumulated depreciation—equipment 50,300,000 Buildings 96,100,000 Equipment 150,300,000 Land 18,100,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the following selected...

  • At January 1, 2018, Ivanhoe Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings...

    At January 1, 2018, Ivanhoe Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation equipment Buildings $56,600,000 55,000,000 100,600,000 140,500,000 19,700,000 Equipment Land 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the following...

  • At January 1, 2018, Sheridan Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...

    At January 1, 2018, Sheridan Limited reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $65,600,000 Accumulated depreciation—equipment 49,100,000 Buildings 96,400,000 Equipment 156,900,000 Land 20,300,000 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 residual value; the equipment is estimated to have a 10-year useful life and no residual value. During 2018, the following selected...

  • BACK NE Question 2 At January 1, 2018, Crane Limited reported the following property Accumulated depreciation--buildings...

    BACK NE Question 2 At January 1, 2018, Crane Limited reported the following property Accumulated depreciation--buildings Accumulated depreciation-equipment Buildings Equipment Land $63,800,000 57,600,000 91,400,000 136,300,000 19,000,000 The company uses straight-line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries analy. The buildings are estimated to have a 40-year se He and no residual values the equipment is estimated to have a 10 year Me and residual value During 2018, the following selected transactions...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT