I just need help with recording adjusting entries for depreciation for 2012, I n
ID: 2384602 • Letter: I
Question
I just need help with recording adjusting entries for depreciation for 2012, I not sure how to record correctly.
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 2012, the following selected cash transactions occurred.
Apr 1 Purchased land for $2,130,000.
May 1 Sold equipment that cost $780,000 when purchased on January 1, 2008.The equipment
was sold for $450,000.
Jun 1 Sold land purchased on June 1, 2002 for $1,500,000.The land cost $400,000.
Jul 1 Purchased equipment for $2,000,000.
Dec 31 Retired equipment that cost $500,000 when purchased on December 31, 2002. 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 2012.
(c) Prepare the plant assets section of Jimenez’s balance sheet at December 31, 2012.
(a)
Apr. 1 Land 2,130,000
Cash 2,130,000
May 1 Depreciation Expense 32,500
Accumulated Depreciation--Equipment 32,500
May 1 Cash 450,000
Accumulated Depreciation--Equipment 344,500
Equipment 780,000
Gain on Disposal 14,500
Record sale of equipment
Jun 1 Cash 1,500,000
Land 400,000
Gain on Disposal 1,100,000
Jul 1 Equipment 2,000,000
Cash 2,000,000
Jul 1 Depreciation Expense 100,000
Accumulated Depreciation--Equipment 100,000
Dec 31 Accumulated Depreciation--Equipment 500,000
Equipment 500,000
Record retirement of Equipment
(b)
Date Account Title Amount
Account Title Amount
Account Title Amount
Account Title Amount
Record depreciation of Buildings
Date Account Title Amount
Account Title Amount
Account Title Amount
Account Title Amount
Record depreciation of Equipment
Explanation / Answer
similar problem : Calculating depreciation? please help? At December 31, 2011, Jimenez Company reported the following as plant assets. Land $3,960,000 Buildings $29,560,000 Less: Accumulated depreciation-buildings 12,432,000 17,128,000 Equipment 47,819,000 Less: Accumulated depreciation-equipment 4,620,000 43,199,000 Total plant assets $64,287,000 During 2012, the following selected cash transactions occurred. April 1 Purchased land for $2,375,000. May 1 Sold equipment that cost $720,000 when purchased on January 1, 2008. The equipment was sold for $416,200. June 1 Sold land purchased on June 1, 2002, for $1,671,000. The land cost $404,000. July 1 Purchased equipment for $2,150,000. Dec. 31 Retired equipment that cost $502,000 when purchased on December 31, 2002. No salvage value was received. (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. I ALREADY DID THIS PART, ALTHOUGH I AM NOT SURE IF IT'S CORRECT BECAUSE I DON'T REALLY UNDERSTAND HOW TO DO DEPRECIATION (b)Record adjusting entries for depreciation for 2012. I DON'T KNOW HOW TO CALCULATE THE DEPRECIATION FOR EQUIPMENT. PLEASE HELP ME. a. Apr 1 Dr. Land $2,375,000 Cr. Cash $2,375,000 May 1 Dr. Cash $416,200 Dr. Accumulated Depreciation $312,000 Cr. Loss on Sale $8,200 Cr. Equipment $720,000 ($720,000 * 52/120) June1 Dr. Cash $1,671,000 Cr. Gain on Sale $1,267,000 Cr. Land $404,000 July 1 Dr. Equipment $2,150,000 Cr. Cash $2,150,000 Dec. 31 Dr. Accumulated Depreciation $502,000 Cr. Equipment $502,000 b. Dr. Depreciation Expense $107,500 Dr. Accumulated Depreciation $107,500 ($2,150,000/10 years = $215,000 * 6/12)