Problem 9-5A

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

Land $ 4,000,000 Buildings $28,500,000 Less: Accumulated depreciationbuildings 12,100,000 16,400,000 Equipment 48,000,000 Less: Accumulated depreciationequipment 5,000,000 43,000,000 Total plant assets $63,400,000

During 2018, 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, 2014. The equipment was sold for $450,000. June 1 Sold land purchased on June 1, 2008 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, 2008. The company received no proceeds related to salvage.

Warning

Don't show me this message again for the assignment

Ok Cancel

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.)

Date Account Titles and Explanation Debit Credit Apr. 1 May 1 June 1 July 1 Dec. 31 Apr. 1 May 1 June 1 July 1 Dec. 31 (To record depreciation) May 1 (To record sale of equipment) Apr. 1 May 1 June 1 July 1 Dec. 31 Apr. 1 May 1 June 1 July 1 Dec. 31 Apr. 1 May 1 June 1 July 1 Dec. 31 (To record depreciation) Apr. 1 May 1 June 1 July 1 Dec. 31 (To record retirement of equipment)

{C}

Warning

Don't show me this message again for the assignment

Ok Cancel

Link to Text Link to Text Link to Text

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 Apr. 1 May 1 June 1 July 1 Dec. 31 (To record building depreciation) Apr. 1 May 1 June 1 July 1 Dec. 31 (To record equipment depreciation)

Warning

Don't show me this message again for the assignment

Ok Cancel

Link to Text Link to Text Link to Text

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

GRAND COMPANY Balance Sheet (Partial) For the Year Ended December 31, 2018 For the Month Ended December 31, 2018 December 31, 2018 Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Plant Assets Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Plant Assets Total Stockholders' Equity $ $ Add Less : Add Less : Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Plant Assets Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Plant Assets Total Stockholders' Equity $

{C}

Warning

Don't show me this message again for the assignment

Ok Cancel