FINANCIAL ACCOUNTING (ACC 2000) ractice Gradebook ORION Downloadable eTextbook g

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FINANCIAL ACCOUNTING (ACC 2000) ractice Gradebook ORION Downloadable eTextbook gnment Problem 9-5A (Part Level Submission) At December 31, 2019, Grand Company reported the following as plant assets. Land Buildings Less: Accumulated depreciation-buildings 12,100,000 16,400,000 Equipment Less: Accumulated depreciation-equipment5,000,000 43,000,000 $ 4,000,000 $28,500,000 48,000,000o Total plant assets $63,400,000 During 2020, the following selected cash transactions occurred. April 1 Purchased land for $2,130,000. nt that cost $750,000 when purchased on January 1, 2016. The equipment was sold for $450,000 June 1 Sold land purchased on June 1, 2010 for $1,500,000. The land cost $400,000. uly 1 Purchased equipment for $2,500,oo0. Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 2010. The company received no related to salvage. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimate 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 retirema (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record fournal entries in the order presented in th problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Your answer is partially correct. Try again. Versio All Rights Reserved. A Division of John Wiley &Sons; In olicy 1 200

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Journal

April 1 Land 2,130,000 Cash    2,130,000 (To record purchase of Land) May 1 Depreciation 25,000 Accumulated Depreciation 25,000 (To record depreciation on equipment sold) May 1 Cash 450,000 Accumulated Depreciation 325,000 Equipment 750,000 Income statement (Gain on sale) 25,000 (To record sale of equipment) June 1 Cash 1,500,000 Land 400,000 Income statement (Gain on sale) 1,100,000 (To record sale of Land) July 1 Equipment 2,500,000 Cash 2,500,000 (To record purchase of equipment) Dec 31 Depreciation 50,000 Accumulated Depreciation 50,000 (To record deprciation on equipment retired) Dec 31 Accumulated Depreciation 500,000 Equipment 500,000 (To recors retirement of equipment)

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