Problem 9-5A (Part Level Submission) At December 31, 2015, Grand Company reported the following as plant assets.Land $3,961,000 Buildings $27,196,000 Less: Accumulated depreciationAc€??buildings 11,589,000 15,607,000 Equipment 47,678,000 Less: Accumulated depreciationAc€??equipment 5,317,000 42,361,000 Total plant assets $61,929,000During 2016, the following selected cash transactions occurred.April 1 Purchased land for $2,004,000. May 1 Sold equipment that cost $1,170,000 when purchased on January 1, 2012. The equipment was sold for $702,000. June 1 Sold land purchased on June 1, 2006 for $1,511,000. The land cost $403,000. July 1 Purchased equipment for $2,475,000. Dec. 31 Retired equipment that cost $485,000 when purchased on December 31, 2006. No salvage value was received.
(a) 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. (If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Apr. 1
May 1
(To record depreciation)
May 1
(To record sale of equipment)
June 1
July 1
Dec. 31
(To record depreciation)
Dec. 31
(To record retirement of equipment)