Statement of Financial Position Assignment | Top Universities
Question 2 At January 1, 2017, Ivanhoe Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment $62,650,000 53,850,000 97,600,000 150,750,000 Land 20,350,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. 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. During 2017, the following selected transactions occurred: Purchased land for $4.40 million, paid $1.100 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1 Sold equipment for $330,000 cash.
The equipment cost $3.30 million when originally purchased on January 1, 2009, Sold land for $4.02 million, Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. Purchased equipment for $2.80 million in cash. Retired equipment that cost $1 million when purchased on December 31,, 2007. No proceeds were received. Apr. 1 May 1 June 1 July 1 Dec. 31 Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If one entry is required, select “No Entry” for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation expense) May 1 629/2019 E here to search for the amounts.) Account Titles and Explanation Debit Credit Date (To record depreciation expense) May 1 (To record sale of equipment) June 1 (To record depreciation expense) pe here to search (To record depreciation expense for equipment) Dec. 31 (To record interest incurred but not yet paid) Dec. 31 (To record interest accrued but not yet received) LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the property, plant, and equipment section of the company's statement of financial position at: December 31. (Lise IVANHOE COMPANY Statement of Financial Position (Partial) Get Accounting Homework Help Today.