Subject: Business    / Accounting

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

Land    $ 4,083,000
Buildings    $26,620,000
Less: Accumulated depreciation—buildings    16,229,925    10,390,075
Equipment    54,440,000
Less: Accumulated depreciation—equipment    6,805,000    47,635,000
Total plant assets    $62,108,075

During 2018, the following selected cash transactions occurred.

Apr.    1    Purchased land for $2,994,200.
May    1    Sold equipment that cost $816,600 when purchased on January 1, 2011. The equipment was sold for $231,370.
June    1    Sold land for $2,177,600. The land cost $1,361,000.
July    1    Purchased equipment for $1,497,100.
Dec.    31    Retired equipment that cost $952,700 when purchased on December 31, 2008. No salvage value was received.

Journalize the transactions. Pina 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.

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