After the controller of Stern Corporation had ascertained the changes in accounts receivable and the allowance for doubtful accounts in 2010, a similar analysis was made of property, plant, and equipment and accumulated depreciation accounts. Again the controller examined the December 31, 2009, balance sheet.
Questions
1. In a manner similar to that used in Stern Corporation (A), analyze the effect of each of these transactions on the property, plant, and equipment accounts, accumulated depreciation, and any other accounts that may be involved. Prepare journal entries for these transactions.
2. Give the correct totals for property, plant, and equipment, and the amount of accumulated depreciation as of December 31, 2010, after the transactions affecting them had been recorded.