(ACC 280 / XACC 280) At December 31, 2008, Jimenez Company reported the following as plant assets

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

Consider the following transactions of Parolini Company for 2008

Consider the following transactions of Parolini Company for 2008.

1. Sold a 6-month insurance policy to Orosco Corporation for $9,000 on March
2. Leased office space to Easley Supplies for a 1-year period beginning September 1.The rent of $30,000 was paid in advance.
3. Received a deposit of $10,000 for an office space in September from Alpha Corporation. The space will not be available until October 2008.
4. Sold a 12 month insurance policy to Great Idea Corporation for $12,000 on June 1, 2008.

Instructions
For each item above, indicate the amount of revenue Parolini should recognize in calendar year 2008. Explain.

Click here for the solution: Consider the following transactions of Parolini Company for 2008