Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Ayayai 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.
 
 

At December 31, 2025, Ayayai Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May 1 1 June 1 July 1 Dec. 31 $26,510,000 11,929,500 40,040,000 5,005,000 $ 3,003,000 14,580,500 35,035,000 $52,618,500 Purchased land for $2,202,200. Sold equipment that cost $600,600 when purchased on January 1, 2019. The equipment was sold for $170,170. Sold land for $1,601,600. The land cost $1,001,000. Purchased equipment for $1,101,100. Retired equipment that cost $700,700 when purchased on December 31, 2016. No salvage value was received.