At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets Apr. May During 2026, the following selected cash transactions occurred. June $26,520,000 11,934,000 (a) 60,640,000 Your answer is correct. 7,580,000 $4,548,000 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. 14,586,000 53,060,000 $72,194,000 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets Apr. May During 2026, the following selected cash transactions occurred. June $26,520,000 11,934,000 (a) 60,640,000 Your answer is correct. 7,580,000 $4,548,000 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. 14,586,000 53,060,000 $72,194,000 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:At December 31, 2025, Blue Corporation reported the following plant assets.
Land
Buildings
Less: Accumulated depreciation-buildings
Equipment
Less: Accumulated depreciation-equipment
Total plant assets
Apr.
May
June
During 2026, the following selected cash transactions occurred.
(a)
1
$26,520,000
1
11,934,000
60,640,000
7,580,000
Your answer is correct.
$4,548,000
14,586,000
1 Purchased land for $3,335,200.
Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720.
Sold land for $2,425,600. The land cost $1,516,000.
53,060,000
$72,194,000
July
1 Purchased equipment for $1,667,600.
Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received.
Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.)
Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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. (List all debit entries before credit entries. Record entries in the order displayed in the
problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts.)
Transcribed Image Text:Record adjusting entries for depreciation for 2026. (List debit entry before credit entry. Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
Date
Account Titles and Explanation
(To record depreciation on buildings)
(To record depreciation on equipment)
Debit
Credit
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