P10-5A Journalize a series of equipment transactions related to purchase, sale, retirement, and depreciation
At December 31, 2017, Grand Company reported the following as plant assets.
	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
During 2018, the following selected cash transactions occurred.
April 1	Purchased land for $2,130,000.
May 1	Sold equipment that cost $750,000 when purchased on January 1, 2014. The
	equipment was sold for $450,000.
June 1	Sold land purchased on June 1, 2008 for $1,500,000. The land cost $400,000.
July 1	Purchased equipment for $2,500,000.
Dec. 31	Retired equipment that cost $500,000 when purchased on December 31, 2008.
	No salvage value was received.
Instructions
(a)	Journalize the above transactions. The company uses straight-line depreciation for
	buildings and equipment. The buildings are estimated to have a 50-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 2018.
(c )	Prepare the plant assets section of Grand's balance sheet at December 31, 2018.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)	April 1	Account				Value
			Account				Value
	May 1	Account				Value
			Account				Value
	May 1	Account				Value
		Account				Value
			Account				Value
			Account				Value
	June 1	Account				Value
			Account				Value
			Account				Value
	July 1	Account				Value
			Account				Value
	Dec. 31	Account				Value
			Account				Value
	Dec. 31	Account				Value
			Account				Value
(b)	Dec. 31	Account				Value
			Account				Value
	Dec. 31	Account				Value
			Account				Value
(c)	GRAND COMPANY
	Partial Balance Sheet
	December 31, 2018
	Plant Assets						Value
	Land
	Buildings					Value
	Less: Accumulated depreciation -buildings					Value	?
	Equipment					Value
	Less: Accumulated depreciation -equipment					Value	?
	Total plant assets						?
After you have completed the requirements of P10-5A, consider the additional questions.
Answers are on the other tab in this file.
1	Assume the sales proceed from the May 1 sale of equipment changed to $410,000.
	What is the impact on the journal entry on the Equipment account?
2.	Suppose the cost of the equipment purchased on July 1 changed to $2,150,000.
	What is the impact on the journal entry recording the transaction, the adjusting entry
	to record depreciation and the plant assets section of the balance sheet?