Question

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

Land $5,613,000
Buildings $26,640,000
Less: Accumulated depreciationâbuildings 22,311,675 4,328,325
Equipment 74,840,000
Less: Accumulated depreciationâequipment 9,355,000 65,485,000
Total plant assets $75,426,325

During 2018, the following selected cash transactions occurred.
Apr. 1 Purchased land for $4,116,200.
May 1 Sold equipment that cost $1,122,600 when purchased on January 1, 2011. The equipment was sold for $318,070.
June 1 Sold land for $2,993,600. The land cost $1,871,000.
July 1 Purchased equipment for $2,058,100.
Dec. 31 Retired equipment that cost $1,309,700 when purchased on December 31, 2008. No salvage value was received.

Required:
Journalize the transactions.

Answer 1

1. Journal voucher

Journal Entries

Date Accounts title Debit Credit

June 1 Cash $ 2,993,600

Gain on sale of land $ 1,122,600

Land $ 1,871,000

(Being land sold)

2. Partial Balance sheet

Riverbed Corporation

Partial Balance sheet

December 31, 2008

Plant Assets

Land $ 7,858,200

Building $ 26,640,000

(-) Accumulated Depreciation-building $ 74,465,800 $ 3,662,625

Equipment $ 74,465,800

(-) Accumulated Depreciation-equipment $ (14,734,125) $ 59,731,675

Total Plant Assets $ 71,252,200