At December 31, 2010, Rijo Corporation reported the following plant assets.
Less: Accumulated depreciation—buildings
Less: Accumulated depreciation—equipment
During 2011, the following selected cash transactions occurred.
Purchased land for $2,200,000.
Sold equipment that cost $600,000 when purchased on January 1, 2004. The equipment was sold for $170,000.
Sold land for $1,800,000. The land cost $1,000,000.
Purchased equipment for $1,300,000.
Retired equipment that cost $500,000 when purchased on December 31, 2001. No salvage value was received.
(a) Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balanc
uses straight-line depreciation for buildings and equipment. The buildings are estimated to h
value; the equipment is estimated to have a 10-year useful life and no salvage value. Update
time of sale or retirement.
(b) Record adjusting entries for depreciation for 2011.