Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Ayayai 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.
 
 

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At December 31, 2025, Ayayai Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May 1 1 June 1 July 1 Dec. 31 $26,510,000 11,929,500 40,040,000 5,005,000 $ 3,003,000 14,580,500 35,035,000 $52,618,500 Purchased land for $2,202,200. Sold equipment that cost $600,600 when purchased on January 1, 2019. The equipment was sold for $170,170. Sold land for $1,601,600. The land cost $1,001,000. Purchased equipment for $1,101,100. Retired equipment that cost $700,700 when purchased on December 31, 2016. No salvage value was received. At December 31, 2025, Ayayai Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May 1 1 June 1 July 1 Dec. 31 $26,510,000 11,929,500 40,040,000 5,005,000 $ 3,003,000 14,580,500 35,035,000 $52,618,500 Purchased land for $2,202,200. Sold equipment that cost $600,600 when purchased on January 1, 2019. The equipment was sold for $170,170. Sold land for $1,601,600. The land cost $1,001,000. Purchased equipment for $1,101,100. Retired equipment that cost $700,700 when purchased on December 31, 2016. No salvage value was received.

Answer rating: 100% (QA)

To calculate the adjusted plant assets at December 31 2026 we need to account for the various transa... View the full answer