Problem 9-5A

At December 31, 2017, Grand Company reported the following as plant assets.

Land				$ 4,320,000
Buildings		$29,800,000
Less: Accumulated depreciationbuildings		10,570,000		19,230,000
Equipment		47,520,000
Less: Accumulated depreciationequipment		4,910,000		42,610,000
Total plant assets				$66,160,000

During 2018, the following selected cash transactions occurred.

April 1		Purchased land for $2,000,000.
May 1		Sold equipment that cost $840,000 when purchased on January 1, 2014. The equipment was sold for $504,000.
June 1		Sold land purchased on June 1, 2008 for $1,430,000. The land cost $393,000.
July 1		Purchased equipment for $2,440,000.
Dec. 31		Retired equipment that cost $480,000 when purchased on December 31, 2008. The company received no proceeds related to salvage. ______________________________________________________________________________________

(1) 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 0 for the amounts.)

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(2) 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.)

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(3) Prepare the plant assets section of Grands balance sheet at December 31, 2018. (List Plant Assets in order of Land, Buildings and Equipment.)