At December 31, 2017, Blue Corporation reported the following
plant assets.
| Land |
$ 5,853,000 |
|||
| Buildings |
$26,740,000 |
|||
| Less: Accumulated depreciation—buildings |
23,265,675 |
3,474,325 |
||
| Equipment |
78,040,000 |
|||
| Less: Accumulated depreciation—equipment |
9,755,000 |
68,285,000 |
||
| Total plant assets |
$77,612,325 |
During 2018, the following selected cash transactions
occurred.
| Apr. | 1 | Purchased land for $4,292,200. | |
| May | 1 | Sold equipment that cost $1,170,600 when purchased on January 1, 2011. The equipment was sold for $331,670. |
|
| June | 1 | Sold land for $3,121,600. The land cost $1,951,000. | |
| July | 1 | Purchased equipment for $2,146,100. | |
| Dec. | 31 |
Retired equipment that cost $1,365,700 when purchased on |
1.Prepare the plant assets section of Blue’s balance sheet at
December 31, 2018. (Hint: You may wish to set up T
accounts, post beginning balances, and then post 2018
transactions.)





