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At December 31, 2010 , Jimenez Company reported the following as plant assets. L

ID: 2434514 • Letter: A

Question

At December 31, 2010, Jimenez Company reported the following as plant assets.

Land

$3,703,000

Buildings

$27,850,000

Less: Accumulated depreciation-buildings

11,175,000

16,675,000

Equipment

48,718,000

Less: Accumulated depreciation-equipment

4,564,000

44,154,000

     Total plant assets

$64,532,000

During 2011, the following selected cash transactions occurred.

April 1

Purchased land for $2,027,000.

May 1

Sold equipment that cost $828,000 when purchased on January 1, 2007. The equipment was sold for $478,600.

June 1

Sold land purchased on June 1, 2001, for $1,620,000. The land cost $409,000.

July 1

Purchased equipment for $2,370,000.

Dec. 31

Retired equipment that cost $510,000 when purchased on December 31, 2001. No salvage value was received.

Record adjusting entries for depreciation for 2011.

$

At December 31, 2010, Jimenez Company reported the following as plant assets.

Land

$3,703,000

Buildings

$27,850,000

Less: Accumulated depreciation-buildings

11,175,000

16,675,000

Equipment

48,718,000

Less: Accumulated depreciation-equipment

4,564,000

44,154,000

     Total plant assets

$64,532,000

During 2011, the following selected cash transactions occurred.

April 1

Purchased land for $2,027,000.

May 1

Sold equipment that cost $828,000 when purchased on January 1, 2007. The equipment was sold for $478,600.

June 1

Sold land purchased on June 1, 2001, for $1,620,000. The land cost $409,000.

July 1

Purchased equipment for $2,370,000.

Dec. 31

Retired equipment that cost $510,000 when purchased on December 31, 2001. No salvage value was received.

Explanation / Answer

JIMENEZ COMPANY $ Balance Sheet (Partial) December 31,2011 Equipment 48,718,000.00 Add: Additions during the year 2,370,000.00 51,088,000.00 Less: Disposed during the year 828,000.00 50,260,000.00 Less: Retired Equipment during the year 510,000.00 Net book value of equipment 49,750,000.00 Less: Accumulated depreciation up to december31,2010 4,564,000.00 45,186,000.00

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