ACC 280 / XACC 280 Solution
Problem 10-5A (P10-5A) At December 31, 2008, Jimenez Company reported the following as plant assets.
Land $ 4,000,000
Buildings $28,500,000 Less: Accumulated depreciation—buildings
12,100,000 16,400,000 Equipment 48,000,000 Less: Accumulated
depreciation—equipment 5,000,000 43,000,000 Total plant assets
$63,400,000
During 2009, the following selected cash transactions occurred.
April 1 Purchased land for $2,130,000.
May 1 Sold equipment that cost $780,000 when purchased on January 1, 2005. The equipment was sold for $450,000.
June 1 Sold land purchased on June 1, 1999, for $1,500,000.The land cost $400,000.
July 1 Purchased equipment for $2,000,000.
Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 1999. No salvage value was received.
Instructions
(a) Journalize the above transactions. The company uses straight-line
depreciation for buildings and equipment. The buildings are estimated to
have a 50-year life and no salvage value. The equipment is 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.
(b) Record adjusting entries for depreciation for 2009.
(c) Prepare the plant assets section of Jimenez’s balance sheet at December 31, 2009.
Click here for the solution: (ACC 280 / XACC 280) At December 31, 2008, Jimenez Company reported the following as plant assets
