At December 31, 2017, Arnold Corporation reported the following plant assets.

Land		$3,000,000
Buildings	$26,500,000
Less: Accumulated depreciation-buildings	11,925,000	14,575,000
Equipment	40,000,000
Less Accumulated depreciation ?equipment	5,000,000	35,000,000
Total plant assets		$52,575,000

During 2018, the following selected cash transactions occurred.

Apr. 1 Purchased land for $2,200,000.

May 1 Sold equipment that cost $600,000 when purchased on January 1, 2011. The equipment was sold for $170,000.

June 1 Sold land for $1,600,000. The land cost $1,000,000.

July 1 Purchased equipment for $1,100,000.

Dec. 31 Retired equipment that cost $700,000 when purchased on December 31, 2008. No salvage value was received.

Journalize the transactions. Arnold uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful 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.

Answer rating: 100% (QA)

And Lets journalize the transactions for Arnold Corporation 1 April 1 Purchased land for 2200000 Deb... View the full answer