AB 116 WEEK 3 PROBLEM 10-5A

AB 116 WEEK 3 Problem 10 5A
At December 31 2014 Grand Company reported the following as plant assets.
Land				$ 4,113,000
Buildings		$28,150,000		
Less: Accumulated depreciation-buildings		11,175,000		16,975,000
Equipment		48,658,000		
Less: Accumulated depreciation-equipment		4,577,000		44,081,000
    Total plant assets				$65,169,000

During 2015, the following selected cash transactions occurred.
April 1		Purchased land for $2,028,000.
May 1		Sold equipment that cost $702,000 when purchased on January 1, 2011. The equipment was sold for $421,200.
June 1		Sold land purchased on June 1, 2005 for $1,424,000. The land cost $395,000.
July 1		Purchased equipment for $2,301,000.
Dec. 31		Retired equipment that cost $475,000 when purchased on December 31, 2005. No salvage value was received.
Problem 10-5A
At December 31, 2014, Grand Company reported the following as plant assets.
Land				$ 4,113,000
Buildings		$28,150,000		
Less: Accumulated depreciation-buildings		11,175,000		16,975,000
Equipment		48,658,000		
Less: Accumulated depreciation-equipment		4,577,000		44,081,000
    Total plant assets				$65,169,000

During 2015, the following selected cash transactions occurred.
April 1		Purchased land for $2,028,000.
May 1		Sold equipment that cost $702,000 when purchased on January 1, 2011. The equipment was sold for $421,200.
June 1		Sold land purchased on June 1, 2005 for $1,424,000. The land cost $395,000.
July 1		Purchased equipment for $2,301,000.
Dec. 31		Retired equipment that cost $475,000 when purchased on December 31, 2005. No salvage value was received.
Problem 10-5A
At December 31, 2014, Grand Company reported the following as plant assets.
Land				$ 4,113,000
Buildings		$28,150,000		
Less: Accumulated depreciation-buildings		11,175,000		16,975,000
Equipment		48,658,000		
Less: Accumulated depreciation-equipment		4,577,000		44,081,000
    Total plant assets				$65,169,000

During 2015, the following selected cash transactions occurred.
April 1		Purchased land for $2,028,000.
May 1		Sold equipment that cost $702,000 when purchased on January 1, 2011. The equipment was sold for $421,200.
June 1		Sold land purchased on June 1, 2005 for $1,424,000. The land cost $395,000.
July 1		Purchased equipment for $2,301,000.
Dec. 31		Retired equipment that cost $475,000 when purchased on December 31, 2005. No salvage value was received.
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.)
Dec. 31		Accumulated Depreciation-Buildings		($28,150,000 x 1/50)	 = 	$563,000

Dec. 31		Accumulated Depreciation-Equipment		($47,481,000* x 1/10)		$4,748,100
				[($2,301,000 x 1/10) x 6/12]		115,050
						$4,863,150

*($48,658,000 - $702,000 - $475,000) = $47,481,000
Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the plant assets section of Grand- balance sheet at December 31, 2015. (List Plant Assets in order of land, buildings and equipment.)