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Problem 9-2A At December 31, 2017, Sheffield Corporation reported the following

ID: 2598868 • Letter: P

Question

Problem 9-2A

At December 31, 2017, Sheffield Corporation reported the following plant assets.

Land

$ 3,798,000

Buildings

$26,660,000

Less: Accumulated depreciation—buildings

15,097,050

11,562,950

Equipment

50,640,000

Less: Accumulated depreciation—equipment

6,330,000

44,310,000

Total plant assets

$59,670,950


During 2018, the following selected cash transactions occurred.

Prepare the plant assets section of Sheffield’s balance sheet at December 31, 2018. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2018 transactions.) (List Plant Assets in order of Land, Building and Equipment.)

Land

$ 3,798,000

Buildings

$26,660,000

Less: Accumulated depreciation—buildings

15,097,050

11,562,950

Equipment

50,640,000

Less: Accumulated depreciation—equipment

6,330,000

44,310,000

Total plant assets

$59,670,950

Explanation / Answer

Plant assets section of Sheffield’s balance sheet at December 31, 2018 is as prepared below:

Working:

Plant Assets Land 5,317,200 Buildings 26,660,000 less: accumulated dep buildings 15,097,050 11,562,950 Equipment 50,386,800 Less: Accumulated dep equipment 4,886,760 45,500,040 Total plant assets 62,380,190
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