Question

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Problem 10-05A a-c (Video) At December 31, 2020, Flint Company reported the following as plant assets. Land $ 3,770,000 Buildings $27,290,000 Less: Accumulated depreciation-buildings 12,170,000 15,120,000 Equipment 48,020,000 Less: Accumulated depreciation-equipment 4,550,000 43,470,000 Total plant assets 562,360,000 During 2021, the following selected cash transactions occurred. April 1 May 1 June 1 July 1 Dec. 31 Purchased land for $2,190,000. Sold equipment that cost $900,000 when purchased on January 1, 2017. The equipment was sold for $540,000. Sold land purchased on June 1, 2011 for $1,540,000. The land cost $394,000. Purchased equipment for $2,530,000. Retired equipment that cost $491,000 when purchased on December 31, 2011. The company received no proceeds related to salvage 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation)

Answer 1

Date	Account Titles and Explanation	Debit	Credit
April 1	Land	2,190,000
	Cash		2,190,000
May 1	Depreciation Expense	30,000
	Accumulated Depreciation - Equipment		30,000
	(900,000/10 years x 4/12)
May 1	Cash	540,000
	Accumulated Depreciation - Equipment	390,000
	Equipment		900,000
	Gain on Disposal of Plant Assets		30,000
June 1	Cash	1,540,000
	Gain on Disposal of Plant Assets		1,146,000
	Land		394,000
July 1	Equipment	2,530,000
	Cash		2,530,000
Dec 31	Depreciation Expense	49,100
	Accumulated Depreciation - Equipment		49,100
Dec 31	Accumulated Depreciation - Equipment	491,000
	Equipment		491,000
Date	Account Titles and Explanation	Debit	Credit
Dec 31	Depreciation Expenses	545,800
	Accumulated Depreciation - Building		545,800
	(27,290,000/50 years)
Dec 31	Depreciation Expenses	4,789,400
	Accumulated Depreciation - Equipment		4,789,400
	(48,020,000 - 900,000 - 491,000)/10 years + (2,530,000/10 years x 1/2)
	Flint Company
	Balance Sheet (Partial)
	December 31, 2021
	Property, plant, and equipment
	Land		5,566,000
	Building	27,290,000
	Less: Accumulated Depreciation	12,715,800	14,574,200
	Equipment	49,159,000
	Less: Accumulated Depreciation	8,458,400	40,700,600
			60,840,800