Homework Sourse377309 Total and assets Dats Acceunt Titles and Eglasation 2
Solution
Apr. 1 Land 2,190,000
Cash 2,190,000
May 1 Depreciation Expense 30,000
Accumulated Depreciation Equipment 30,000
($900,000 * 1/10 * 4/12)
1 Cash 540,000
Accumulated Depreciation Equipment 390,000
Equipment 900,000
Gain on Disposal 30,000
Cost $900,000
Accum. depreciation—
equipment 390,000
[($900,000 * 1/10 * 4years) + $30,000]
Book value 510,000
Cash proceeds 540,000
Gain on disposal $ 30,000
June 1 Cash 1,490,000
Land 394,000
Gain on Disposal 1,096,000
July 1 Equipment 2,530,000
Cash 2,530,000
Dec. 31 Depreciation Expense 49,100
Accumulated Depreciation Equipment 49,100
($491,000* 1/10)
31 Accumulated Depreciation Equipment 491,000
Equipment 491,000
Cost $491,000
Accum. depreciation equipment 491,000
($491,000 * 1/10 * 10)
Book value $ 0
(b) Dec. 31 Depreciation Expense 545,000
Accumulated Depreciation Buildings 545,000
($27,290,000 * 1/50)
31 Depreciation Expense 4,825,400
Accumulated Depreciation Equipment 4,825,400
($46,989,000* 1/10) $4,698,900
[($2,530,000 * 1/10) * 6/12] 126,500
$4,825,400
*($48,020,000 – $540,000 – $491,000)
Partial Balance Sheet (note below for amounts)
December 31, 2011
Plant Assets*
Land ....................................................................... $5,566,000
Buildings.................................................................... $27,290,000
Less: Accumulated depreciation—
buildings..................................................... 11,715,000 15,575,000
Equipment................................................................. 49,179,000
Less: Accumulated depreciation—
equipment................................................. 8,573,500 40,605,500
Total plant assets............................................. $61,746,500
Land
Bal. 3,770,000
Apr. 1 2,190,000
June 1 394,000
Bal. 5,566,000
Buildings
Bal. 27,290,000
Bal. 27,290,000
Accumulated Depreciation—Buildings
Bal. 11,170,000
Dec. 31 adj. 545,000
Bal. 11,715,000
Equipment
Bal. 48,020,000
July 1 2,190,000
May 1 540,000
Dec. 31 491,000
Bal. 49,179,000
Accumulated Depreciation—Equipment
May 1 390,000
Dec. 31 491,000
Bal. 4,550,000
May 1 30,000
Dec. 31 49,100
Dec. 31 adj. 4,825,400
Bal. 8,573,500
| Land | |
| Bal. 3,770,000 Apr. 1 2,190,000 | June 1 394,000 |
| Bal. 5,566,000 |
