The consolidated statements of income, balance sheets, and cash flows of Finning International Inc. are presented in Exhibit 8-12. In addition, Finning International's note regarding its land, buildings, and equipment was presented earlier in this chapter, in Exhibit 8-6. As you may recall, Finning International is the largest Caterpillar dealer, selling, leasing, and servicing the large equipment in Canada.
Required:
Prepare summary journal entries to reconstruct the transactions that affected Finning International's land, buildings, and equipment in 2009 (i.e., acquisitions, disposals, and depreciation expense). Deal with the total land, buildings, and equipment, rather than the individual components.