Question

Kimmel, Accounting, de el Stemnounce CALCULATOR NE Problem -2A (Part Level Submission) At December 31, 2017, Martinez Corporation reported the following plant assets. Land $ 3,783,000 Buildings $26,590,000 Less Accumulated depreciation buidings 15,037 425 11,552,575 Equipment 50,440,000 Less: Accumulated depreciation equipment 6,305,000 44,135,000 Total plant assets $59.470,575 During 2018, the following selected cash transactions occurred. Apr. 1 May 1 June 1 July 1 Dec.31 Purchased land for $2,774,200. Sold equipment that cost $756,600 when purchased on lanuary 1, 2011. The equipment was sold for $214,370 Sold land for $2,017,500. The land cost $1,261,000 Purchased equipment for $1,387,100. Retired equipment that cost $82,700 when purchased on December 31, 2008. No salvage value was received (a Journalue the transactions, Martinez uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-ye useful life and no savage value the equipment estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problema 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) Date Debit Credit Account Titles and Explanation Land (April 3.180,000 Cash May bepreciation Expense Accumulated Depreciation Equipment (To record depreciation on woment sold)

Answer 1

Accounts Title & Explanantions Debit Credit Date April 1 Land Account 27,74,200 To Cash Account 27,74,200 Depreciation Expense To Accumulated Depreciation Equipment Original Cost May 1 25,220 7,56,600 Less. Accumulated Depreciation (From 2011 to 2017) Less. Depreciation - Jan to April 2018 5,29,620 25,220 (To Record Depreciation on Equipment sold) 25,220 Net Cost 2,01.760 Accumulated Depreciation Equipment Sale 2,14,370 5,54,840 Cash Account Profit 12,610 2,14,370 Gain on Disposal of Plant Assets Equipment 12,610 7,56,600 Sale Price Cash Account 20,17,600 June 1 20,17,600 To Land Account To Gain on Disposal of Land Less. Cost of Land 12,61,000 12,61,000 Gain 7,56,600 7,56,600 Equipment July 1 13,87,100 To Cash Account 13,87,100 Dec 31 Depreciation Expense Original Cost Less. Accumulated Depreciation (From 2009 to 2017) Less. Depreciation Jan to Dec 2018 Value 88,270 882700 Accumulated Depreciation Equipment (To Record Depreciation on Equipment retired) 7,94,430 88,270 88,270 Accumulated Depreciation Equipment Equipment 8,82,700 8,82,700