>> Managerial Accounting
At December 31, 2014, Navaro Corporation reported the following plant asses.
Less: Accumulated depredation-buildings 12,366,225 22,403.775
Less: Accumulated depredation-equipment 5,185,000 36.295,000
Total plant assets $61,809.775
During 2015, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,281,400.
May 1 Sold equipment that cost 5622,200 when purchased on January 1, 2008. The equipment was sold for $176,290. June 1 Sold land for $1,659,200. The land cost $1,037,000.
July 1 Purchased equipment for $1,140,700.
Dec. 31 Retired equipment that cost $725,900 when purchased on December 31, 2005. No salvage value was received.
Record adjusting entries for depreciation for 2015.
Journalize the transactions. Navaro uses straight-line depredation 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.