Question
At December 31, 2019, Novak Corp. reported the following as plant assets. Land $ 3,710,000 Buildings $27,420,000 Less: Accumulated depreciationbuildings 13,940,000 13,480,000 Equipment 47,200,000 Less:
At December 31, 2019, Novak Corp. reported the following as plant assets.
| Land | $ 3,710,000 | |||
| Buildings | $27,420,000 | |||
| Less: Accumulated depreciationbuildings | 13,940,000 | 13,480,000 | ||
| Equipment | 47,200,000 | |||
| Less: Accumulated depreciationequipment | 4,820,000 | 42,380,000 | ||
| Total plant assets | $59,570,000 |
During 2020, the following selected cash transactions occurred.
| April 1 | Purchased land for $2,030,000. | |
| May 1 | Sold equipment that cost $960,000 when purchased on January 1, 2016. The equipment was sold for $576,000. | |
| June 1 | Sold land purchased on June 1, 2010 for $1,500,000. The land cost $397,000. | |
| July 1 | Purchased equipment for $2,510,000. | |
| Dec. 31 | Retired equipment that cost $503,000 when purchased on December 31, 2010. The company received no proceeds related to salvage. |
Record adjusting entries for depreciation for 2020
Prepare the plant assets section of Novaks balance sheet at December 31, 2020
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
