Reference no: EM132187671
Problem - At December 31, 2017, Bridgeport Corporation reported the following plant assets.
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Land
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$5,673,000
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Building
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$26,540,000
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Less: Accumulated depreciation-buildings
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22,250,175
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3,989,825
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Equipment
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77,640,000
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Less: Accumulated depreciation - equipment
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9,455,000
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66,185,000
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Total plant assets
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$75,847,825
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During 2018, the following selected cash transactions occurred.
Apr. 1 Purchased land for $4,160,200.
May 1 Sold equipment that cost $1,134,600 when purchased on January 1, 2011. The equipment was sold for $321,470.
June 1 Sold land for $3,025,600. The land cost $1,891,000.
July 1 Purchased equipment for $2,080,100.
Dec. 31 Retired equipment that cost $1,323,700 when purchased on December 31, 2008. No salvage value was received.
Journalize the transactions. Bridgeport 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.
Record adjusting entries for depreciation for 2018.
Prepare the plant assets section of Bridgeport's balance sheet at December 31, 2018.