Homework SourseEndblast Productions showed the following selected asset bal
Endblast Productions showed the following selected asset balances on December 31, 2017:
1Remaining estimated useful life is eight years with a residual value of $20,000; depreciated using the straight-line method to the nearest whole month.
2Total estimated useful life is 10 years with a residual value of $24,000; depreciated using the double-declining-balance method to the nearest whole month.
Required:
Prepare the entries for each of the following. (Round intermediate calculations to the nearest whole dollar.)
1. The land and building were sold on September 27, 2018, for $614,000 cash. (If no entry is required for a transaction, select \"No journal entry required\" in the first account field.)
1. Record the building depreciation for 2018.
2. Record the sale of land and building.
2. The equipment was sold on November 2, 2018, for $57,900 cash. (If no entry is required for a transaction, select \"No journal entry required\" in the first account field.)
1. Record the equipment depreciation for 2018.
2. Record the sale of equipment.
| Land | $ | 440,800 |
| Building | 570,400 | |
| Accumulated depreciation, building1 | 411,200 | |
| Equipment | 193,200 | |
| Accumulated depreciation, equipment2 | 84,000 | |
Solution
workings:
| 1 | Account | Debit | Credit |
| 1 | Depreciation expense building | 13,050 | |
| Accumulated depreciation building | 13,050 | ||
| 2 | Accumulated depreciation building | 4,24,250 | |
| Cash | 6,14,000 | ||
| Land | 4,40,800 | ||
| Building | 5,70,400 | ||
| Gain on sale of land and building | 27,050 | ||
| 2 | |||
| 1 | Depreciation expense equipment | 7,100 | |
| Accumulated depreciation equipment | 7,100 | ||
| 2 | Accumulated depreciation equipment | 91,100 | |
| Cash | 57,900 | ||
| Land | - | ||
| Equipment | 1,93,200 | ||
| Loss on sale of equipment | 44,200 | - |
