ACCOUNTING HOMEWORK

Chap 9

E9-3

(a)

Land
Cash price of property $80,000
Net removal cost of warehouse 6,500
Attorney’s fee 1,900
Real estate broker’s fee 5,200
Cost of land $93,600
(b)

Architect’s fee and driveways and a parking lot will debit to Land Improvements
account.
E9-8

GENERAL JOURNAL
Date Account Titles and Explanation Debit Credit
2017
Jan. 1 Accumulated Depreciation - Equipment 62,000
Equipment 62,000
(To record retirement of machine)
June 30 Depreciation Expense - Equipment 6,000
Accumulated Depreciation - Equipment 6,000
(To record depreciation before selling)
Cash 5,000
Accumulated Depreciation - Equipment 30,000
Loss on Disposal of Plant Assets 1,000
Equipment 36,000
(To record sale of a computer at a loss)
Dec. 31 Depreciation Expense - Equipment 5,000
Accumulated Depreciation - Equipment 5,000
(To record yearly depreciation)
Cash 9,000
Accumulated Depreciation - Equipment 16,800
Equipment 25,000
Gain on Disposal of Plant Assets 800
$9,000 – ($25,000 - $16,800)
(To record sale of a truck at a gain)
 P9-2A

(a)

GENERAL JOURNAL
Date Account Titles and Explanation Debit Credit
2018
Apr. 1 Land 2,200,000
Cash 2,200,000
(To record land purchased)
May 1 Depreciation Expense - Equipment 20,000
Accumulated Depreciation - Equipment 20,000
(To record depreciation before selling)
Cash 170,000
Accumulated Depreciation - Equipment 440,000
Equipment 600,000
Gain on Disposal of Plant Assets 10,000
$170,000 – ($600,000 - $440,000)
(To record sale of equipment at a gain)
June 1 Cash 1,600,000
Land 1,000,000
Gain on Disposal of Plant Assets 600,000
(To record sale of land at a gain)
July 1 Equipment 1,100,000
Cash 1,100,000
(To record equipment purchased)
Dec. 31 Depreciation Expense - Equipment 70,000
Accumulated Depreciation - Equipment 70,000
(To record yearly depreciation of equipment
purchased on December 31, 2008)
Accumulated Depreciation - Equipment 700,000
Equipment 700,000
(To record retirement of equipment)
(b)

GENERAL JOURNAL
Date Account Titles and Explanation Debit Credit
2018 Adjusting Entries
Dec. 31 Depreciation Expense - Buildings 662,500
Accumulated Depreciation - Buildings 662,500
(To record yearly depreciation)
Depreciation Expense – Equipment 3,870,000
Accumulated Depreciation – Equipment 3,870,000
($40,000,000 - $600,000 - $70,000) : 10
(To record yearly depreciation)
Depreciation Expense - Equipment 55,000
Accumulated Depreciation - Equipment 55,000
(To record depreciation of new purchased
equipment)
(c)

GENERAL LEDGER
Land
Jan. 1 3,000,000 June 1 1,000,000
Apr. 1 2,200,000
April 30 Bal. 4,200,000

Buildings
Jan. 1 14,575,000
Dec. 31 Bal. 14,575,000

Accumulated Depreciation - Buildings

Dec. 31 662,500
Dec. 31 Bal. 662,500

Equiment
Jan. 1 35,000,000 May 1 600,000
July 1 1,100,000 Dec. 31 700,000
Dec. 31 Bal. 34,800,000

Accumulated Depreciation - Equipment

May 1 440,000 Dec. 31 3,870,000
Dec. 31 700,000 20,000
55,000
70,000
Dec. 31 Bal. 2,875,000
 ARNOLD COMPANY
Balance Sheet
December 31, 2018
Property, plant, and equipment
Land $4,200,000
Buildings $14,575,000
Less: Accumulated Depreciation - Buildings 662,500 13,912,500
Equipment 34,800,000
Less: Accumulated Depreciation - Equipment 2,875,000 31,925,000
Total plant assets $50,037,500
 P9-4A

(a)

GENERAL JOURNAL
Date Account Titles and Explanation Debit Credit
2017
Apr. 1 Land 4,400,000
Cash 1,100,000
Note Payable 3,300,000
(To record land purchased)
May 1 Depreciation Expense - Equipment 93,333
Accumulated Depreciation - Equipment 93,333
(To record depreciation before selling)
Cash 300,000
Accumulated Depreciation - Equipment 2,333,333
Loss on Disposal of Plant Assets 166,667
Equipment 2,800,000
(To record sale of equipment at a loss)
June 1 Cash 900,000
Note Receivable 2,700,000
Land 1,400,000
Gain on Disposal of Plant Assets 2,200,000
(To record sale of land at a gain)
July 1 Equipment 2,200,000
Cash 2,200,000
(To record equipment purchased)
Dec. 31 Depreciation Expense - Equipment 100,000
Accumulated Depreciation - Equipment 100,000
(To record yearly depreciation of equipment
purchased on December 31, 2007)
Accumulated Depreciation - Equipment 1,000,000
Equipment 1,000,000
(To record retirement of equipment)
(b)

GENERAL JOURNAL
Date Account Titles and Explanation Debit Credit
2017 Adjusting Entries
Dec. 31 Depreciation Expense - Buildings 2,435,000
Accumulated Depreciation - Buildings 2,435,000
 (To record yearly depreciation)
Depreciation Expense – Equipment 14,620,000
Accumulated Depreciation – Equipment 14,620,000
($150,000,000 - $2,800,000 - $1,000,000) : 10
(To record yearly depreciation)
Depreciation Expense - Equipment 110,000
Accumulated Depreciation - Equipment 110,000
(To record depreciation of new purchased
equipment)
Interest Expense 148,500
Interest Payable 148,500
(To record interest on land purchased)
Interest Receivable 78,750
Interest Revenue 78,750
(To record interest on land purchased)
(a)

GENERAL LEDGER
Land
Jan. 1 20,000,000 June 1 1,400,000
Apr. 1 4,400,000
April 30 Bal. 23,000,000

Buildings
Jan. 1 97,400,000
Dec. 31 Bal. 97,400,000

Accumulated Depreciation - Buildings

Dec. 31 62,200,000
2,435,000
Dec. 31 Bal. 64,635,000

Equiment
Jan. 1 150,000,000 May 1 2,800,000
July 1 2,200,000 Dec. 31 1,000,000
Dec. 31 Bal. 148,400,000

Accumulated Depreciation - Equipment

May 1 2,333,333 Dec. 31 54,000,000
Dec. 31 1,000,000 93,333
100,000
14,620,000
110,000
Dec. 31 Bal. 65,590,000
 YOUNGSTOWN COMPANY
Balance Sheet
December 31, 2017
Property, plant, and equipment
Land $23,000,000
Buildings $97,400,000
Less: Accumulated Depreciation - Buildings 64,635,000 32,765,000
Equipment 148,400,000
Less: Accumulated Depreciation - Equipment 65,590,000 82,810,000
Total plant assets $138,575,000