Please show your steps, so that I can better understand. I need help with the following.
1) Journalize the transaction to record depreciation of equipment on May 1
2) The adjusting entry to record the equipment depreciation for 2021
The photos attached have all the information. Thank you!
Problem 10-05A a-c (Video) At December 31, 2020, 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 2021, 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, 2017. The equipment was sold for $450,000 June 1 Sold land purchased on June 1, 2011 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, 2011. The company received no proceeds related to salvage. Your answer is partially correct. Try again. 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the Date Account Titles and Explanation Debit Credit Apr 1 Land 2,130,000 Cash 2,130,000 May 1 Depreciation Expense 612,500 612,500 Accumulated Depreciation Equipment (To record depreciation) May 1 Cash 450,000 Accumulated Depreciation-Equipment 612,500 Gain on Disposal of Plant Assets 612,500 750,000 Equipment (To record sale of equipment) Record adjusting entries for depreciation for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31 Depreciation Expense 570,000 570,000 Accumulated Depreciation-Buildings (To record building depreciation) Dec. 31 Depreciation Expense 4,875,000 Accumulated Depreciation-Equipment 4,875,000 (To record equipment deprecition)
