Acc280 Financial Accounting: P9-5A At December 31, 2011, Jimenez Company reported

Acc280 Financial Accounting

P9-5A
At December 31, 2011, 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 2012, the following selected cash transactions occurred.
1-Apr Purchased land for $2,130,000.
1-May Sold equipment that cost $780,000 when purchased on January 1, 2008. The equipment was sold for $450,000.
1-Jun Sold land purchased on June 1, 2002 for $1,500,000. The land cost $400,000.
1-Jul 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.
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