At December 31,2010, Kretsinger Corporation reported these 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 2011, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,630,000
May 1 Sold equipment that cost $750,000 when purchased on January 1,2006
The equipment was sold for $370,000.
June 1 Sold land purchased on June 1, 1998, for $1,800,000.The land cost $800,000.
July 1 Purchased equipment for $800,000
Dec. 31 Retired fully depreciated equipment that cost $470,000 when purchased on December 31, 2001. No salvage value was received.
Kretsinger 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.
Instructions: Journalize the transactions, record the adjusting entries for depreciation for 2011, and prepare the plant assets section of Kretsinger's balance sheet at December 31, 2011.