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P9-5A Journalize a series of equipment transactions related to purchase, sale, retirement, and depreciation
At December 31, 2015, Grand Company reported the following as plant assets.
	Land					4,000,000
	Buildings			28,500,000
	Less: Accumulated depreciation - buildings			12,100,000		16,400,000
	Equipment			48,000,000
	Less: Accumulated depreciation - equipment			5,000,000		43,000,000
		Total plant assets				63,400,000
During 2016, the following selected cash transactions occurred.
April 1	Purchased land for $2,130,000.
May 1	Sold equipment that cost $750,000 when purchased on January 1, 2012. The
	equipment was sold for $450,000. Hint: Record depreciation then record the sale.
June 1	Sold land purchased on June 1, 2006 for $1,500,000. The land cost $400,000.
July 1	Purchased equipment for $2,500,000.
Instructions
(a)	Record the purchase and sale of assets.
	Remember to update depreciation for the assets sold based on the time of sale, before recording the sale.
	Record the year-end adjusting entry for depreciation 2016 for assets still on the books.
(b)	Link all beginning balances to the General Ledger and post all entries to the General Ledger.
(c )	Prepare the plant assets section of Grand's balance sheet at December 31, 2016.

General Ledger

(b)

Date

Date

Date

Date

Land

Debit

Credit

Building

Accumulated Depreciation - Building

Debit

Credit

Debit

Credit

Equipment

Accumulated Depreciation - Equipment

Debit

Credit

Debit

Credit

GRAND COMPANY
Partial Balance Sheet
December 31, 2016
Plant Assets:
Buildings
Less: Accumulated depreciation -buildings
Equipment
Less: Accumulated depreciation -equipment
Land
Total plant assets

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