Question

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

Land				$ 5,883,000
Buildings		$26,560,000
Less: Accumulated depreciation—buildings		23,384,925		3,175,075
Equipment		78,440,000
Less: Accumulated depreciation—equipment		9,805,000		68,635,000
Total plant assets				$77,693,075

During 2018, the following selected cash transactions occurred.

Apr.	1		Purchased land for $4,314,200.
May	1		Sold equipment that cost $1,176,600 when purchased on January 1, 2011. The equipment was sold for $333,370.
June	1		Sold land for $3,137,600. The land cost $1,961,000.
July	1		Purchased equipment for $2,157,100.
Dec.	31		Retired equipment that cost $1,372,700 when purchased on December 31, 2008. No salvage value was received.

Journalize the transactions. Flounder 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
April 1May 1June 1July 1Dec. 31
April 1May 1June 1July 1Dec. 31
	(To record depreciation on equipment sold)
April 1May 1June 1July 1Dec. 31
April 1May 1June 1July 1Dec. 31
April 1May 1June 1July 1Dec. 31
	(To record depreciation on equipment retired)

Answer 1

Journal Entry- Flounder Corporation
Date	Account Tittle	Debit	Credit
2018
1-Apr	Land	4,314,200
	Cash		4,314,200
	TO Record Purchase of Land
1-May	Cash	333,370
	Accumulated Dep-Equipment (1176000/10*7)+(1176000/10*4/12)	862,840
	Equipment		1,176,600
	Gain On Sale Of Equipment		19,610
	To Record Sale of Equipment
1-Jun	Cash	3,137,600
	Gain On Sale Of Land		1,176,600
	Land		1,961,000
	TO Record slae of Land
1-Jul	Equipment	2,157,100
	Cash		2,157,100
	To Record Equipment Purchased
31-Dec	Accumulated Dep (1,372,700/10*10)	1,372,700
	Equipment		1,372,700
	TO Record Equiment Retired