Problem:
At December 31, 2010, Rijo Corporation reported the following plant assets.
Land $3,657,000
Buildings $32,303,500
Less: Accumulated depreciation - buildings
14,749,900
17,553,600
Equipment 48,760,000
Less: Accumulated depreciation - equipment $42,665,000
Total plant assets = $63,875,600
During 2011, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,681,800
May 1 Sold equipment that cost $731,400 when purchased on January 1, 2004. The equipment was sold for $207,230.
June 1 Sold land for $2,194,000. The land cost $1,219,000.
July 1 Purchased equipment for $1,584,700.
Dec. 31 Retired equipment that cost $609,500 when purchased on December 31, 2001. No salvage value was received.
Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2011 transactions.) Rijo uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-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. (List multiple debit/credit entries from largest to smallest amountDate Account/Description Debit Credit entries from the largest to smallest amount.