At December 31, 1997, Yount Corporation reported these plant assets:

During 1998, the following selected cash transactions occurred:

\section*{Instructions}

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

(b) Record adjusting entries for depreciation for 1998.

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

Transcribed Image Text:

Land $ 4,000,000 Buildings $28,500,000 Less: Accumulated depreciation-buildings 12,100,000 16,400,000 Equipment 48,000,000 Less: Accumulated depreciation-equipment 5,000,000 43,000,000 Total plant assets $63,400,000