chptr 9 exercise - P9-2A At December 31, 2010, Rijo...

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P9-2A At December 31, 2010, Rijo Corporation reported the following plant assets. $ 3,000,000 $26,500,000 Less: Accumulated depreciation—buildings 12,100,000 14,400,000 40,000,000 Less: Accumulated depreciation—equipment 5,000,000 35,000,000 $52,400,000 During 2011, the following selected cash transactions occurred. Purchased land for $2,200,000. Sold equipment that cost $600,000 when purchased on January 1, 2004. The equipment was sold for $170,000. Sold land for $1,800,000. The land cost $1,000,000. Purchased equipment for $1,300,000. Retired equipment that cost $500,000 when purchased on December 31, 2001. No salvage value was received. Instructions (a) Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balanc uses straight-line depreciation for buildings and equipment. The buildings are estimated to h value; the equipment is estimated to have a 10-year useful life and no salvage value. Update time of sale or retirement. (b) Record adjusting entries for depreciation for 2011.
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This document was uploaded on 11/02/2011 for the course ACCOUNTING ac 201 at Montgomery.

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chptr 9 exercise - P9-2A At December 31, 2010, Rijo...

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