Question

Problem 9-2A (Part Level Submission)

At December 31, 2017, Arnold Corporation reported the following plant assets.

Land				$ 3,000,000
Buildings		$26,500,000
Less: Accumulated depreciation—buildings		11,925,000		14,575,000
Equipment		40,000,000
Less: Accumulated depreciation—equipment		5,000,000		35,000,000
Total plant assets				$52,575,000

During 2018, the following selected cash transactions occurred.

Apr.	1		Purchased land for $2,200,000.
May	1		Sold equipment that cost $600,000 when purchased on January 1, 2011. The equipment was sold for $170,000.
June	1		Sold land for $1,600,000. The land cost $1,000,000.
July	1		Purchased equipment for $1,100,000.
Dec.	31		Retired equipment that cost $700,000 when purchased on December 31, 2008. No salvage value was received.

Journalize the transactions. Arnold uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at 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 "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit (To record depreciation on equipment sold) (To record depreciation on equipment retired)

Answer 1