View the step-by-step solution to:


At January 1, 2017, Youngstown Company reported the following property, plant, and equipment


Accumulated depreciation—buildings$ 62,200,000

Accumulated depreciation—equipment54,000,000




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 $4.4 million. Paid $1.1 million cash and issued a 3‐year, 6% note payable for the balance. Interest on the note is payable annually each April 1.May1

Sold equipment for $300,000 cash. The equipment cost $2.8 million when originally purchased on January 1, 2009.June1

Sold land for $3.6 million. Received $900,000 cash and accepted a 3‐year, 5% note for the balance. The land cost $1.4 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.July1

Purchased equipment for $2.2 million cash.Dec.31

Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.


(a) Record the above transactions

Top Answer

All the... View the full answer

entries calci 2.PNG

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question