Question

Problem 9-2A (Part Level Submission) At December 31, 2017 Martinez Corporation reported the following plant assets $ 3,783,000 11,552,575 Land Buildings Less: Accumulated depreciation- buildings Equipment Less: Accumulated depreciation equipment Total plant assets $26,590,000 15,017 475 50,440,000 6.305.000 44,135,000 $59,470,575 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased and for $2,774,200 May 1 Sold equipment that cost $756,600 when purchased on January 1, 2011. The equipment was sold for $214,370 June 1 Sold land for $2,017,600. The land cout $1,261,000. MY 1 Purchased equipment for $1,387,100. Dec. 31 Retired equipment that cost $82,700 when purchased on December 31, 2008. No salvage value was received (a) Journal the transactions Martine uses s i n depreciation for buildings and equipment. The buildings we estimated to have a 40-year useful and no salvage value; the equipment is estimated to have a 10 year stude and no salvage valge Update depreciation on assets disposed of the time of sale or retirement. (Record entries in the order displayed in the problem statement Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "Ne Entry for the account tities and enter for the amounts.) Date Account Tities and Explanation Debit Credit (April 1 Lond (To record depreciation on equipment sold)

Answer 1

Date	Account and explanation	Debit	Credit
Apr-01	Land	$2,774,200
	Cash		$2,774,200
May-01	Depreciation expenses-Equipment	$25,220
	Accumulated Depreciation-Equipment		$25,220
May-01	Accumulated Depreciation-Machine	$554,840
	Cash	$214,370
	Machine		$756,600
	Gain on disposal of Machine		$12,610
Jun-01	Cash	$2,017,600
	Land		$1,261,000
	Gain on disposal of Land		$756,600
Jul-01	Equipment	$1,387,100
	Cash		$1,387,100
Dec-31	Accumulated Depreciation-Equipment	$706,160
	Loss on retirement of Equipment	$176,450
	Equipment		$882,700
Dec-31	Depreciation expenses-Land	$664,250
	Accumulated Depreciation-Land		$664,250
Dec-31	Depreciation expenses-Equipment	$4,880,070
	Accumulated Depreciation-Equipment		$4,880,070