Journalize a series of equipment transactions related to purchase, sale, retirement, and…

Journalize a series of equipment transactions related to purchase, sale, retirement, and depreciation.

At December 31.2019. Jimenez Enterprises reported the following as plant assets.

Instructions

a. 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 residual value. The equipment is estimated to have a 10-year useful life and no residual value. Update depreciation on assets disposed of at the time of sale or retirement.

b. Record adjusting entries for depreciation for 2020.

c. Prepare the plant assets section ofJimenez’s statement of financial position at December 31, 2020.

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