prepare the plant assets section of grand s balance sheet at december 31 2015 617362

At December 31, 2014, 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 2015, 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, 2011. The equipment was sold for $450,000.
June 1	Sold land purchased on June 1, 2005 for $1,500,000. The land cost $400,000.
July 1	Purchased equipment for $2,500,000.
Dec. 31	Retired equipment that cost $500,000 when purchased on December 31, 2005. No salvage value was received.

Instructions

(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.

(b)Record adjusting entries for depreciation for 2015.

(c)Prepare the plant assets section of Grand”s balance sheet at December 31, 2015.