P9-2A Joumalize equipment transactions related to purchase, sales, retirements and depreciation At December 31, 2017, Arnold Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation -buildings Equipment Less: Accumulated depreciation -equipment Total plant assets $3,000,000 $26,500,000 11,925,000 $14,575,000 40,000,000 5,000,000 35,000,000 $52,575,000 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,200,000. May 1 Sold equipment that cost $600,000 when purchased on January 1, 2011. The equipment was sold for $170,000. June 1 Sold land for $1,600,000. The land cost $1,000,000. July 1 Purchased equipment for $1,100,000. Dec. 31 Retired equipment that cost $700,000 when purchased on December 31, 2008. No salvage value was received. Instructions (a) Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2018 transactions.) Arnold 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 (b) Record adjusting entries for depreciation for 2018. (c) Prepare the plant assets section of Arnold'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 B D G H (a) April 1 Account Account 'Value Value May 1 Account Account Value Value May 1 Account Account Account Account Value Value 3 Value Value 5 56 42 June 1 Account Account Account Value 49 Value Value 50 51 July 1 Account Account Value 53 54 Value 55 Dec. 31 50 Account Account Value Value 31 Account Account Value Value (b) Dec. 31 Value Account Account Value Dec 31 Account Account Value Value c 5 ARNOLD CORPORATION Partial Balance Sheet December 31, 2018 Plant Assets Land Buildings Less: Accumulated depreciation - buildings Equipment Less: Accumulated depreciation - equipment Total plant assets Value "6 ? 78 Value Value Value Value 79 80 ? ? 81 B2 89 12/31/17 04/01/18 Land 6/1/17 Value Value Value 12/31/18 Bal. Value Buildings 12/31/17 Value 12/31/18 Bal. Value 12/31/17 07/01/18 Value Value Equipment 05/01/18 12/31/18 Value Value 12/31/18 Bal. Value 5 Accumulated Depreciation - Building 12/31/17 12/31/18 7 Value Value 8 09 12/31/18 Bal. Value 10 11 12 13 114 05/01/18 12/31/18 Accumulated Depreciation - Equipment Value 12/31/17 Value 05/01/18 12/31/18 12/31/18 115 Value Value Value Value 116 118 12/31/15 Bal. Value 119
