FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 residual value. The equipment is estimated to have a 10-year useful life and no residual value. Update depreciation on assets disposed of at the time of sale or retirement.

 

Record adjusting entries for depreciation for 2020.

 

Prepare the plant assets section of Marigold's statement of financial position at December 31, 2020. (List Property, plant and equipment in order of land, buildings and equipment.) 

At December 31, 2019, Marigold Enterprises reported the following as plant assets.
Land
€4,100,000
Buildings
€27,530,000
Less: Accumulated depreciation-buildings
13,490,000
14,040,000
Equipment
48,500,000
Less: Accumulated depreciation-equipment
5,190,000
43,310,000
Total plant assets
€61,450,000
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Transcribed Image Text:At December 31, 2019, Marigold Enterprises reported the following as plant assets. Land €4,100,000 Buildings €27,530,000 Less: Accumulated depreciation-buildings 13,490,000 14,040,000 Equipment 48,500,000 Less: Accumulated depreciation-equipment 5,190,000 43,310,000 Total plant assets €61,450,000
During 2020, the following selected cash transactions occurred.
April
Purchased land for €2,000,000.
1
May
Sold equipment that cost €660,000 when purchased on January 1, 2016. The equipment was soid for €410,080.
1
June
Sold land purchased on June 1, 2010 for €1,610,000. The land cost €401.000.
July
Purchased equipment for €2,570,000.
1
Dec.
Retired equipment that cost €488,000 when purchased on December 31, 2010. No residual value was received.
31
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Transcribed Image Text:During 2020, the following selected cash transactions occurred. April Purchased land for €2,000,000. 1 May Sold equipment that cost €660,000 when purchased on January 1, 2016. The equipment was soid for €410,080. 1 June Sold land purchased on June 1, 2010 for €1,610,000. The land cost €401.000. July Purchased equipment for €2,570,000. 1 Dec. Retired equipment that cost €488,000 when purchased on December 31, 2010. No residual value was received. 31
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