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Problem 10-5A (Part Level Submission) At December 31, 2017, Grand Company reported the following as plant assets. Land $ 3,590,000 13,910,000 Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets $27,650,000 13,740,000 48,010,000 4,600,000 43,410,000 $60,910,000 During 2018, the following selected cash transactions occurred. April 1 May 1 June 1 Purchased land for $2,170,000. Sold equipment that cost $1,080,000 when purchased on January 1, 2014. The equipment was sold for $648,000. Sold land purchased on June 1, 2008 for $1,410,000. The land cost $402,000. Purchased equipment for $2,370,000. Retired equipment that cost $503,000 when purchased on December 31, 2008. No salvage value was received. July 1 Dec. 31 (a) Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the Date Account Titles and Explanation Debit Credit . (To record depreciation) May 1 (To record sale of equipment) (To record depreciation)

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