Problem 10-5A At December 31, 2017, Grand Company reported the following as plan
ID: 2558280 • Letter: P
Question
Problem 10-5A
At December 31, 2017, Grand Company reported the following as plant assets.
During 2018, the following selected cash transactions occurred.
Retired equipment that cost $473,000 when purchased on December 31, 2008. No salvage value was received
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.)
3)Prepare the plant assets section of Grand’s balance sheet at December 31, 2018. (List Plant Assets in order of Land, Buildings and Equipment.)
Problem 10-5A
At December 31, 2017, Grand Company reported the following as plant assets.
Land $ 3,560,000 Buildings $29,090,000 Less: Accumulated depreciation—buildings 12,460,000 16,630,000 Equipment 48,930,000 Less: Accumulated depreciation—equipment 5,430,000 43,500,000 Total plant assets $63,690,000
During 2018, the following selected cash transactions occurred.
Retired equipment that cost $473,000 when purchased on December 31, 2008. No salvage value was received
Explanation / Answer
Date Account title and explanaiton Debit Credit Apr. 1 Land 2,000,000 Cash 2,000,000 May 1 Depreciation Expense (1170000/10 * 4/12) 39000 Accumulated Depreciation-Equipment 39000 May 1 Cash 702,000 Accumulated Depreciation-Equipment 507000 Equipment 1,170,000 Gain on Disposal of Plant Assets 39000 June 1 Cash 1,470,000 Gain on Disposal of Plant Assets 1060000 land 410,000 July 1 Equipment 2,470,000 Cash 2,470,000 Dec 31 Depreciation Expense 47300 Accumulated depreciation - Equipment 47300 Dec 31 Accumulated depreciation - Equipment 473000 Equipment 473000
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