At December 31, 2017, Grand Company reported the following as plant assets. $ 4,

Question

At December 31, 2017, Grand Company reported the following as plant assets. $ 4,080,000 Land Buildings Less: Accumulated depreciation-buildings 12,210,000 16,150,000 Equipment Less: Accumulated depreciation-equipment 5,160,000 43,510,000 $28,360,000 48,670,000 Total plant assets $63,740,000 During 2018, the following selected cash transactions occurred. April 1 Purchased land for $2,000,000. May 1 Sold equipment that cost $780,000 when purchased on January 1, 2014. The equipment was sold for $468,000. June 1 Sold land purchased on June 1, 2008 for $1,410,000. The land cost $392,000 July 1 Purchased equipment for $2,430,000. Dec. 31 Retired equipment that cost $502,000 when purchased on December 31, 2008. The company received no proceeds related to salvage Dec. 31 Retired equipment that cost $502,000 when purchased on December 31, 2008. The company received no proceds related to salvage ? (a) Your answer is correct. 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts.)

Explanation / Answer

Giving Solution for Balance Sheet Wrong Items: Equiment Balance: As At 31 Dec 2017 48670000 Less: Equipment Sold on May1 780000 (Original Cost) Add: Equipment Purchased on Jul 1 2430000 As At 31 Dec 2018 50320000 (Answer) Accumulated Depreciation for Equipment: As At 31 Dec 2017 5160000 Add: Deprecaition on Equipment Till Sale of May 1 26000 Less: Depreciation on Equipment Sold on May1 338000 (Total Accumulated Depreciation on Sold) Add: Deprecaition on Equipment Till Retirement 50200 Less: Deprecaition on Equipment Retired 502000 Add: Deprecaition for the year 2018 4860300 As At 31 Dec 2018 9256500 (Answer)

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