Question

Journalize the above transactions. Bonita uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year useful life and no residual value. The equipment is estimated to have a 10-year useful life and no residual value. Update depreciation on assets disposed of at the time of sale or retirement

Answer 1

Date	Account and explanation	Debit	Credit
Mar-01	Land	$20,52,000
	Cash		$20,52,000
Apr-01	Depreciation expenses-Equipment($42,400*3/12)	$10,600
	Accumulated Depreciation-Equipment		$10,600
Apr-01	Accumulated Depreciation-Equipment	$1,80,200
	Cash	$2,50,160
	Equipment		$4,24,000
	Gain on disposal		$6,360
Jun-01	Cash	$15,33,000
	Land		$3,04,000
	Gain on disposal of land		$12,29,000
Oct-01	Equipment	$14,98,000
	Cash		$14,98,000
Dec-31	Accumulated Depreciation-Equipment	$5,03,000
	Equipment		$5,03,000
Dec-31	Depreciation expenses-Building	$5,70,420
	Accumulated Depreciation-Building		$5,70,420
Dec-31	Depreciation expenses-Equipment	$41,15,700
	Accumulated Depreciation-Equipment		$41,15,700
BONITA COMPANY
Partial Balance sheet
For the year ended Dec 31,2017
Land		$47,09,000
Building	$2,85,21,000
Less:Accumulated Depreciation-Building	$1,23,61,420	$1,61,59,580
Equipment	$4,11,57,000
Less:Accumulated Depreciation-Equipment	$88,26,100	$3,23,30,900
Total Plant Assets		$5,31,99,480