At December 31, 1997, Jerry Hamsmith Corporation reported these plant assets:

\section*{Instructions}

(a) Journalize the transactions. [Hint: You may wish to set up T accounts, post begin ning balances, and then post 1998 transactions.] Hamsmith uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40 -year useful 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.

(b) Record adjusting entries for depreciation for 1998.

(c) Prepare the plant asset section of Hamsmith's balance sheet at December 31, 1998

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Land Buildings $ 3,000,000 $26,500,000 Less: Accumulated depreciation-buildings 12,100,000 14,400,000 Equipment: 40,000,000 Less: Accumulated depreciation- equipment 5,000,000 35,000,000 Total plant assets $52,400,000