Problem 10-5A (Part Level Submission) At December 31, 2017, Grand Company reported the following as plant assets. Land $ 3,590,000 $27,650,000 13,740,000 13,910,000 Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment 48,010,000 4,600,000 43,410,000 Total plant assets $60,910,000 During 2018, the following selected cash transactions occurred. April 1 May 1 June 1 July 1 Dec. 31 Purchased land for $2,170,000. Sold equipment that cost $1,080,000 when purchased on January 1, 2014. The equipment was sold for $648,000. Sold land purchased on June 1, 2008 for $1,410,000. The land cost $402,000. Purchased equipment for $2,370,000. Retired equipment that cost $503,000 when purchased on December 31, 2008. No salvage value was received. (a) Your answer is correct. 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 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1 Land 2170000 Cash 2170000 May 1 2 Depreciation Expense 36000 Accumulated Depreciation-Equipment 36000 (To record depreciation) May 1 Cash 648000 Accumulated Depreciation-Equipment 468000 Equipment 1080000 Gain on Disposal of Plant Assets 36000 (To record sale of equipment) June 1 Cash 1410000 Land 402000 L Gain on Disposal of Plant Assets 1008000 July 1 Equipment 2370000 Cash 2370000 Dec. 31 Depreciation Expense 50300 M Accumulated Depreciation Equipment 50300 (To record depreciation) Dec 31 | Accumulated Depreciation Equipment 503000 Equipment 503000 (To record retirement of equipment) (b) Record adjusting entries for depreciation for 2018. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record building depreciation)