Homework Help is Here – Start Your Trial Now!
Business
Accounting
Protect Purple Plants (PPP) uses the deferral method of accounting for contributions and has no separate fund for restricted contributions. On January 1, Year 6, PPP received its first restricted cash contribution-$120,000 for the purchase and maintenance of land and a greenhouse building for its rare purple plant collection. On July 1, Year 6, PPP acquired land and a building for $22.000 and $80,000 cash, respectively. The building has an estimated useful life of 20 years and zero residual value. On December 31, Year 6, the remaining $18,000 cash was paid to KJ Maintenance Ltd. for a three-year maintenance contract that requires KJ personnel to provide maintenance services four days per month until December 31, Year 9.

Protect Purple Plants (PPP) uses the deferral method of accounting for contributions and has no separate fund for restricted contributions. On January 1, Year 6, PPP received its first restricted cash contribution-$120,000 for the purchase and maintenance of land and a greenhouse building for its rare purple plant collection. On July 1, Year 6, PPP acquired land and a building for $22.000 and $80,000 cash, respectively. The building has an estimated useful life of 20 years and zero residual value. On December 31, Year 6, the remaining $18,000 cash was paid to KJ Maintenance Ltd. for a three-year maintenance contract that requires KJ personnel to provide maintenance services four days per month until December 31, Year 9.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
No 1 2 3 4 5 Date January 1, Year 6 Cash 6 July 1, Year 6 July 1, Year 6 December 31, Yea December 31, Yez Contribution revenue Land General Journal Cash Building Cash December 31, Yea Accumulated amortization Building Prepaid maintenance Cash *3 X XXI × x x x XX Debit 120,000✔ 22,000✔ >> 80,000 18,000 X 4,000 X X x *Red text indicates no response was expected in a call or a formula-based calculation is incorrect; no points deducted. X X Credit 120,000 22,000 8,000 X 18,000 X 4,000 X X X
Transcribed Image Text:No 1 2 3 4 5 Date January 1, Year 6 Cash 6 July 1, Year 6 July 1, Year 6 December 31, Yea December 31, Yez Contribution revenue Land General Journal Cash Building Cash December 31, Yea Accumulated amortization Building Prepaid maintenance Cash *3 X XXI × x x x XX Debit 120,000✔ 22,000✔ >> 80,000 18,000 X 4,000 X X x *Red text indicates no response was expected in a call or a formula-based calculation is incorrect; no points deducted. X X Credit 120,000 22,000 8,000 X 18,000 X 4,000 X X X
Protect Purple Plants (PPP) uses the deferral method of accounting for contributions and has no separate fund for restricted contributions. On January 1, Year 6, PPP received its first restricted cash contribution-$120,000 for the purchase and maintenance of land and a greenhouse building for its rare purple plant collection. On July 1, Year 6. PPP acquired land and a building for $22.000 and $80,000 cash, respectively. The building has an estimated useful life of 20 years and zero residual value. On December 31, Year 6, the remaining $18,000 cash was paid to KJ Maintenance Ltd. for a three-year maintenance contract that requires KJ personnel to provide maintenance services four days per month until December 31, Year 9. Required: Prepare the journal entries for the following dates: (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) (1) January 1, Year 6 (11) July 1, Year 6 (111) December 31, Year 6 Including year-end adjusting entries
Transcribed Image Text:Protect Purple Plants (PPP) uses the deferral method of accounting for contributions and has no separate fund for restricted contributions. On January 1, Year 6, PPP received its first restricted cash contribution-$120,000 for the purchase and maintenance of land and a greenhouse building for its rare purple plant collection. On July 1, Year 6. PPP acquired land and a building for $22.000 and $80,000 cash, respectively. The building has an estimated useful life of 20 years and zero residual value. On December 31, Year 6, the remaining $18,000 cash was paid to KJ Maintenance Ltd. for a three-year maintenance contract that requires KJ personnel to provide maintenance services four days per month until December 31, Year 9. Required: Prepare the journal entries for the following dates: (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) (1) January 1, Year 6 (11) July 1, Year 6 (111) December 31, Year 6 Including year-end adjusting entries
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Estate taxes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS