At December 31, 2017, Guangzhou Corporation reported the following plant assets.

Land

$ 5,313,000

Buildings

$26,670,000

Less: Accumulated depreciationbuildings

$21,119,175

$5,550,825

Equipment

$70,840,000

Less: Accumulated depreciationequipment

$8,855,000

$61,985,000

Total plant assets

$72,848,825

During 2018, the following selected cash transactions occurred.

Apr. 1

Purchased land for $3,896,200.

May 1

Sold equipment that cost $1,062,600 when purchased on January 1, 2011. The equipment was sold for $301,070.

June 1

Sold land for $2,833,600. The land cost $1,771,000.

July 1

Purchased equipment for $1,948,100.

Dec. 31

Retired equipment that cost $1,239,700 when purchased on December 31, 2008. No salvage value was received.

Additional date:

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.

Straight-line depreciation method is used for buildings and equipments. Update depreciation on assets disposed of at the time of sale or retirement.

a) Journalize the above transactions. (Insert additional lines if needed. Please skip a line between each journal entry. Description is not required)

b) Record adjusting entries for depreciation for 2018.