9-2A

At December 31, 2014, Navaro Corporation reported the following plant assets.

Land$5,628,000

Buildings$29,210,000

Less: Accumulated depreciationbuildings22,371,300

6,838,700

Equipment75,040,000

Less: Accumulated depreciationequipment9,380,000

65,660,000

Total plant assets$78,126,700

During 2015, the following selected cash transactions occurred.

Apr.1Purchased land for $4,127,200.May1Sold equipment that cost $1,125,600when purchased on January 1, 2008. The equipment was sold for $318,920.June1Sold land for $3,001,600. The land cost $1,876,000.July1Purchased equipment for $2,063,600.Dec.31Retired equipment that cost $1,313,200when purchased on December 31, 2005. No salvage value was received.

Warning

Don't show me this message again for the assignment

OkCancel

Journalize the transactions. Navaro uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a40-year useful life and no salvage value; the equipment is estimated to have a10-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.)

Date

Account Titles and Explanation

Debit

Credit

April 1May 1June 1July 1Dec. 31

April 1May 1June 1July 1Dec. 31

(To record depreciation on equipment sold)

April 1May 1June 1July 1Dec. 31

April 1May 1June 1July 1Dec. 31

April 1May 1June 1July 1Dec. 31

(To record depreciation on equipment retired)

Warning

Don't show me this message again for the assignment

OkCancel

Show List of Accounts

Link to Text

Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date.

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record depreciation on buildings.)

31

Warning

Don't show me this message again for the assignment

OkCancel

Show List of Accounts

Link to Text

Prepare the plant assets section of Navaros 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.)

NAVARO CORPORATION

Partial Balance Sheet

December 31, 2015

Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Plant AssetsRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Plant AssetTotal RevenuesTotal Stockholders' Equity

$

$

AddLess

:

LessAdd

:

Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Plant AssetsRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Plant AssetTotal RevenuesTotal Stockholders' Equity