Question 5 Date Account Titles and Explanation Debit Credit

Question 5

Date

Account Titles and Explanation

Debit

Credit

(To record depreciation)

May 1

(To record sale of equipment)

(To record depreciation)

(To record retirement of equipment)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

(To record building depreciation)

(To record equipment deprecition)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Question 5

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

Land		$ 4,180,000
Buildings	$27,310,000
Less: Accumulated depreciation—buildings	12,890,000	14,420,000
Equipment	47,470,000
Less: Accumulated depreciation—equipment	4,530,000	42,940,000
Total plant assets		$61,540,000

During 2018, the following selected cash transactions occurred.

April 1		Purchased land for $2,060,000.
May 1		Sold equipment that cost $1,050,000 when purchased on January 1, 2014. The equipment was sold for $630,000.
June 1		Sold land purchased on June 1, 2008 for $1,520,000. The land cost $400,000.
July 1		Purchased equipment for $2,540,000.
Dec. 31		Retired equipment that cost $494,000 when purchased on December 31, 2008. No salvage value was received.

$\"\"$

1) Journal Entries (Amounts in $)

2) Adjusting Entries for depreciation (Amounts in $)

3) Grand Company

Balance Sheet (Partial)

For the year ended December 31, 2018 (Amounts in $)

Date	Account Titles and Explanation	Debit	Credit
Apr. 1	Land	2,060,000
	Cash		2,060,000
May 1	Depreciation expense (1,050,000/10 yrs*4/12)	35,000
	Accumulated depreciation-equipment		35,000
	(To record depreciation)
May 1	Cash	630,000
	Accumulated depreciation-equipment [(105,000*4 yrs)+35,000]	455,000
	Gain on sale of equipment (Bal Fig) (630,000+455,000-1,050,000)		35,000
	Equipment		1,050,000
	(To record sale of equipment)
June 1	Cash	1,520,000
	Gain on sale of land (Bal Fig) (1,520,000-400,000)		1,120,000
	Land		400,000
July 1	Equipment	2,540,000
	Cash		2,540,000
Dec. 31	Depreciation expense (494,000/10 yrs)	49,400
	Accumulated depreciation-equipment		49,400
	(To record depreciation)
Dec. 31	Accumulated depreciation-equipment (49,400*10 yrs)	494,000
	Equipment		494,000
	(To record retirement of equipment)