Reference no: EM131775943
Problem- At December 31, 2014, Navaro Corporation reported the following plant assets.
| Land |
mce_markernbsp;4,614,000 |
| Buildings |
$34,050,000 |
| Less: Accumulated depreciation-buildings |
18,340,650 |
15,709,350 |
| Equipment |
61,520,000 |
| Less: Accumulated depreciation-equipment |
7,690,000 |
53,830,000 |
| Total plant assets |
$74,153,350 |
During 2015, the following selected cash transactions occurred.
Apr. 1 Purchased land for $3,383,600.
May 1 Sold equipment that cost $922,800 when purchased on January 1, 2008. The equipment was sold for $261,460.
June 1 Sold land for $2,460,800. The land cost $1,538,000.
July 1 Purchased equipment for $1,691,800.
Dec. 31 Retired equipment that cost $1,076,600 when purchased on December 31, 2005. No salvage value was received.
Journalize the transactions. Navaro 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 entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the plant assets section of Navaro's balance sheet at December 31, 2015. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2015 transactions.) (List Plant Assets in order of Land, Building and Equipment.)