accounting for manager
11/28/2020 Problem 7-4
https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 1/2
Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020
*Problem 7-4 At January 1, 2017, Wildhorse Co. reported the following property, plant, and equipment accounts:
Accumulated depreciation—buildings $64,000,000
Accumulated depreciation—equipment 54,400,000
Buildings 97,300,000
Equipment 150,800,000
Land 20,250,000
The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments 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:
Apr. 1 Purchased land for $4.60 million. Paid $1.150 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.
May 1 Sold equipment for $300,000 cash. The equipment cost $3.12 million when originally purchased on January 1, 2009.
June 1 Sold land for $4.08 million. Received $900,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.30 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.
July 1 Purchased equipment for $2.80 million cash.
Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.
Your answer is partially correct. Try again. Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (If a transaction causes a decrease in Ass front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Assets =
Cash + Notes Rec. + Interest Rec. + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. = Inte
Jan. 1 $ $ $ $ $ $
$ $
Your answer is partially correct. Try again. Record the above transactions in the tabular summary from part (a). (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equit Equity item that was reduced.)
Assets =
Cash + Notes Rec. + Interest Rec. + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. =
Jan. 1 $ $ $ $ $ $ $ $
Apr. 1
May 1
May 1
June 1
July 1
Dec. 31
Dec. 31
Your answer is partially correct. Try again. Record any adjustments required at December 31. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negati reduced.)
Assets
Cash + Notes Rec. + Interest Rec. + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip
Jan. 1 $ $ $ $ $ $ $ $
Apr. 1
May 1
20,250,000 97,300,000 64,000,000 150800000 -54400000
20250000 97,300,000 -64,000,000 150800000 54400000
-1150000 4600000
300000 -3120000
900000 3180000 -1300000
-2800000 2800000
-100000
-1000000 1000000
20250000 97,300,000 -64,000,000 150800000 54400000
-1150000 4600000
11/28/2020 Problem 7-4
https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 2/2
Question Attempts: 1 of 2 used
May 1
June 1
July 1
Dec. 31
Dec. 31
Dec. 31 $
Dec. 31
Dec. 31
Dec. 31
Your answer is partially correct. Try again. Prepare the property, plant, and equipment section of the company’s statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
WILDHORSE CO. Statement of Financial Position (Partial)
$
$
:
:
$
Copyright © 2000-2020 by John Wiley & Sons, Inc. or related companies. All rights reserved.
300000 -3120000
900000 3180000 -1300000
-2800000 2800000
-1000000 -100000
1000000
December 31, 2017
Property, Plant and Equipment
Land 20,250,000
Building 97300000
Less Accumulated Depreciation-Buildings $64,000,000 33,300,000
Equipment 150,800,000
Less Accumulated Depreciation-Equipment 54,400,000 96,400,000
Total Property, Plant and Equipment 149,950,000