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Please answer all the parts of the below question: 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   50,6

Please answer all the parts of the below question: 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   50,6

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please answer all the parts of the below question:

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.

Apr.  1   Purchased land for $2,785,200.
May  1   Sold equipment that cost $759,600 when purchased on January 1, 2011. The equipment was sold for $215,220.
June  1   Sold land for $2,025,600. The land cost $1,266,000.
July  1   Purchased equipment for $1,392,600.
Dec.  31   Retired equipment that cost $886,200 when purchased on December 31, 2008. No salvage value was received.
 
 
 
 
 
Prepare a tabular summary that includes the plant asset accounts and balances shown on the December 31, 2017, balance sheet. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

    Assets = Liabilities + Stockholders' Equity    
                                    Retained Earnings    
    Cash + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. =   + Common Stock + Revenue - Expense - Dividend    
Bal.   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
    
 
 
 
 
 
Enter the 2018 transactions in the tabular summary from part (a). Sheffield uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at the time of sale or retirement. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

    Assets = Liabilities + Stockholders' Equity    
                                    Retained Earnings    
    Cash + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. =   + Common Stock + Revenue - Expense - Dividend    
Bal.   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
    
Apr. 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
    
May 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Loss on disposalResearch & development expenseAmortization expenseGain on disposalDepreciation expense
May 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Loss on disposalResearch & development expenseGain on disposalAmortization expenseDepreciation expense
June 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Loss on disposalResearch & development expenseDepreciation expenseAmortization expenseGain on disposal
July 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
    
Dec. 31  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Research & development expenseAmortization expenseGain on disposalDepreciation expenseLoss on disposal
Dec. 31  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
    
 
 
 
 
 
Record adjustments to accounts for depreciation for 2018. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

    Assets = Liabilities + Stockholders' Equity    
                                    Retained Earnings    
    Cash + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. =   + Common Stock + Revenue - Expense - Dividend    
Bal.   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
   $
 
    
Apr. 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
    
May 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Depreciation expenseGain on disposalLoss on disposalAmortization expenseResearch & development expense
May 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Amortization expenseLoss on disposalDepreciation expenseGain on disposalResearch & development expense
June 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Research & development expenseDepreciation expenseGain on disposalLoss on disposalAmortization expense
July 1  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
    
Dec. 31  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 Amortization expenseResearch & development expenseDepreciation expenseLoss on disposalGain on disposal
Dec. 31  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
    
Dec. 31  
 
  
 
  
 
  
 
  
 
  
 
      
 
  
 
  
 
  
 
  
 Gain on disposalResearch & development expenseDepreciation expenseAmortization expenseLoss on disposal
Dec. 31  
 
  
 
  
 
  
 
  
 
  
 
      
 
  
 
  
 
  
 
  
 Gain on disposalDepreciation expenseResearch & development expenseLoss on disposalAmortization expense
 
 
 
 

Prepare the plant assets section of Sheffield’s balance sheet at December 31, 2018.

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