financial accounting

financial accounting

At December 31, 2015, Grand Company reported the following as plant assets.

Land $4,243,000
Buildings $27,441,000
Less: Accumulated depreciation—buildings 12,217,000 15,224,000
Equipment 48,901,000
Less: Accumulated depreciation—equipment 4,625,000 44,276,000
Total plant assets $63,743,000
During 2016, the following selected cash transactions occurred.

April 1 Purchased land for $2,066,000.
May 1 Sold equipment that cost $609,000 when purchased on January 1, 2012. The equipment was sold for $365,400.
June 1 Sold land purchased on June 1, 2006 for $1,525,000. The land cost $397,000.
July 1 Purchased equipment for $2,553,000.
Dec. 31 Retired equipment that cost $518,000 when purchased on December 31, 2006. No salvage value was received.

Collapse question part
(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 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 no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Apr. 1
May 1
(To record depreciation)

May 1
(To record sale of equipment)

June 1
July 1
Dec. 31
(To record depreciation)

Dec. 31
(To record retirement of equipment)

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