BACK NE Question 2 At January 1, 2018, Crane Limited reported the following property Accumulated depreciation--buildings Accumulated depreciation-equipment Buildings Equipment Land $63,800,000 57,600,000 91,400,000 136,300,000 19,000,000 The company uses straight-line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries analy. The buildings are estimated to have a 40-year se He and no residual values the equipment is estimated to have a 10 year Me and residual value During 2018, the following selected transactions occurred: Apr. May June 1 1 Purchased land for $4,700,000. Pad 51,180,000 cash and issued a three-year, 6% mortgage payable for the balance interest on the mortgage is payable anualy each April 1. Sold equipment for $290,000 cash. The equipment cost $2,791,200 when originally purchased on January 1, 2010. Sold land for $3,379,400. Received 5945,800 cash and accepted a three-year 55 note for the balance. The land cost $1,400,000 when purchased on June 1, 2012. Interest on the note is due annually each June 1. Purchased equipment for $2,200,000 cash Retired equipment that cost $1,100,000 when purchased on January 1, 2009. No proceeds were received Tested land for impairment and found that is recoverable value was $19,000,000 July 1 Dec. 31 31 Record the above transactions. (Credit account titles are automatically indeed when the amount watered De mot de manily. If no entry is required, select "No Entry for the accounties and enter for the amounts Nound answers to decal place 05.275. Hecardu let the order presented in the problem) Date Account Titles and Explanation Credit 700.000 e web and your PC Date Debit Credit Account Titles and Explanation Land Apr. 1 v 4,700,000 Cash 1,180,000 Mortgage Payable 2,900,000 May 1 Depreciation Expense 93,040 Accumulated Depreciation - Equipment 93,040 (To record depreciation expense) May 1 Cash 290,000 Accumulated Depreciation - Equipment Loss on Disposal 2,791,200 Equipment (To record loss/gain on sale of equipment) Notes Receivable Land Gain on Disposal (To record loss/gain on sale of land) July Equipment 2,200,000 e web and your PC July 1 Equipment 2,200,000 Cash || 2.200,000 Dec. 31 Depreciation Expense 1,100,000 | Accumulated Depreciation - Equipment 1,100,000 (To record depreciation expense) Dec. 31 Accumulated Depreciation - Equipment 1,100,000 1,100,000 Equipment (To record the retirement of equipment) Dec. 31 Impairment Loss Land (Te record impairment loss) Record any adjusting entries required at December 31. (Credit account titles are automatically indented when the select "No Entry for the account titles and enter for the amounts. Round answers to o decimal places, e.g Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense Accumulated Depreciation - Buildings (To record depreciation expense on buildings) Dec.31 orection Exente he web and your PC Record any adjusting entries required at December 31. (Credit account titles are automatically indented w select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal pla Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense Accumulated Depreciation - Buildings (To record depreciation expense on buildings) Dec 31 Depreciation Expense Accumulated Depreciation - Equipment (To record depreciation expense on equipment) Dec. 31 Interest Expense Interest Payable (To record interest expense) Dec. 31 Interest Receivable Interest Revenue (To record interest revenue) Prepare the property, plant, and equipment section of the company's statement of financial position at December 31 Equipment.) CRANE LIMITED Statement of Financial Position (Partial) The web and your PC Interest Revenue (To record interest revenue) Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. Equipment.) CRANE LIMITED Statement of Financial Position (Partial) December 31, 2018 Assets Property, Plant, and Equipment Land Buildings Less Accumulated Depreciation - Buildings Equipment Less Accumulated Depreciation - Equipment Total Property. Plant, and Equipment e web and your PC