Acc 291 learning team study guide week 2 –

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Resources: Ch. 9 of Financial Accounting.

Complete the one assigned learning team problem found in the Week 2 Microsoft® Excel® template provided in the Course Materials forum.

Submit the completed Microsoft® Excel® template to the Assignments Tab. Problem 1 At December 31, 2011, Jimenez Company reported the following as plant assets.

Plant Assets: $ 4,000,000

Land Buildings Less: Accumulated depreciation— buildings Equipment

28,500,000 12,100,000 16,400,000 48,000,000

Less: Accumulated depreciation— equipment Total plant assets During 2012, the following selected cash transactions occurred.

Apr 1 May 1

Jun 1 Jul 1 Dec 31

Purchased land for $2,130,000.

Sold equipment that cost $780,000 when purchased on January 1, 2008.The equipment was sold for $450,000.

Sold land purchased on June 1, 2002 for $1,500,000.The land cost $400,000.

Purchased equipment for $2,000,000.

Retired equipment that cost $500,000 when purchased on December 31, 2002. No salvage value was received.

Instructions (a)

(b) (c)

Journalize the above transactions.The company uses straight-line depreciation for buildings and equipment.The buildings are estimated to have a 50-year life and no salvage value.The equipment is estimated to have a 10year useful life and no salvage value.

Update depreciation on assets disposed of at the time of sale or retirement.

Record adjusting entries for depreciation for 2012.

Prepare the plant assets section of Jimenez’s balance sheet at December 31, 2012.

5,000,000

43,000,000 $ 63,400,000