Problem 9-4A

At January 1, 2017, Oriole Company reported the following property, plant, and equipment accounts:

Accumulated depreciationbuildings		$62,700,000
Accumulated depreciationequipment		54,100,000
Buildings		97,400,000
Equipment		150,900,000
Land		23,000,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. 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. During 2017, the following selected transactions occurred:

Apr. 1		Purchased land for $4.50 million. Paid $1.125 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.
May 1		Sold equipment for $330,000 cash. The equipment cost $3.18 million when originally purchased on January 1, 2009.
June 1		Sold land for $3.72 million. Received $900,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.50 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.
July 1		Purchased equipment for $2.10 million cash.
Dec. 31		Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. 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 April 1 Land 4,500,000 Cash 1,125,000 Notes Payable 3,375,000 May 1 Depreciation Expense 106,000 Accumulated Depreciation-Equipment 106,000 (To record depreciation expense) May 1 Accumulated Depreciation-Equipment 2,650,000 330,000 200,000 Cash Loss on Disposal of Plant Assets Equipment 3,180,000 (To record sale of equipment) June 1 Cash 900,000 Notes Receivable 2,820,000 Land 1,500,000 Gain on Disposal of Land 2,220,000