Question 1 At January 1, 2022, Crane Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $63,600,000 Accumulated depreciation-equipment 53,350,000 Buildings 97,400,000 Equipment 150,600,000 Land 23,900,000 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 2022, the following selected transactions occurred: Apr.1 Purchased land for $4.70 million. Paid $1.175 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 $220,000 cash. The equipment cost $4.08 million when originally purchased on January 1, 2014. June 1 Sold land for $4.98 million. Received $870,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.60 million when purchased on June 1, 2016. Interest on the note is due annually each June 1. July 1 Purchased equipment for $2.20 million cash. Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received. (a) Your answer is partially correct. Try again. Journalize 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 o for the amounts.) Date Account Titles and Explanation Debit Credit April 1 Land 4,700,000T Mortgage Payable T T 3,525,000 Cash May 1 Depreciation Expense T 136,000 Accumulated Depreciation-Equipment (To record depreciation expense) May 1 Cash 220,000 1 Accumulated Depreciation-Equipment T 3,400,000 cumulated Depreciation Equipment Loss on Disposal of Plant Assets Equipment (To record sale of equipment) une 1 Cash Notes Receivable Land Gain on Disposal of Land 380,000 July 1 Equipment Cash Dec. 314 Depreciation Expense 2,200,000 4,700,000 4,700,000 Accumulated Depreciation Equipment (To record depreciation expense) Dec. 31+ Accumulated Depreciation-Equipment Equipment 1,000,000 (To record disposal of equipment) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 3 of 3 used (b) Record any adjusting entries for depreciation required at December 31. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense 2,435,000 2,435,000 Accumulated Depreciation-Buildings (To record depreciation expense for buildings) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense for equipment) Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Attempts: 0 of 3 used