Chapter 9 journal entires

Chapter 9-ICA At December 31, 2016, Craig Corporation reported these plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation- equipment Total plant assets $ 4,000,000 11,520,000 17,280,000 5,000,000 43,000.000 $28,800,000 48,000,000 S 64,280,000 During 2017, the following selected cash transactions occurred. Apr. 1: Purchased land for $2,600,000. May 1: Sold equipment that cost $750,000 when purchased on January 1, 2012. The equipment was sold for $367,000. June 1: Sold land purchased on June 1, 2006, for $1,800,000. The land cost $800,000 Sept. 1: Purchased equipment for $840,000. Dec. 31: Retired equipment that cost $470,000 when purchased on January 1, 2008. No salvage value was received. Instructions (a) Journalize the transactions. Craig 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 tch-up depreciation on assets disposed of at the time of sale or retirement (b) Record adjusting entries for depreciation for 2017. (Note: No assets are fully depreciated.)