Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Land $ 5,076,000 Buildings $35,850,000 Less: Accumulated depreciationbuildings 20,177,100 15,672,900 Equipment 67,680,000 Less: Accumulated depreciationequipment 8,460,000 59,220,000 Total plant assets $79,968,900 During 2015, the following

Land $ 5,076,000 Buildings $35,850,000 Less: Accumulated depreciationbuildings 20,177,100 15,672,900 Equipment 67,680,000 Less: Accumulated depreciationequipment 8,460,000 59,220,000 Total plant assets $79,968,900

During 2015, the following selected cash transactions occurred.

Apr. 1 Purchased land for $3,722,400. May 1 Sold equipment that cost $1,015,200 when purchased on January 1, 2008. The equipment was sold for $287,640. June 1 Sold land for $2,707,200. The land cost $1,692,000. July 1 Purchased equipment for $1,861,200. Dec. 31 Retired equipment that cost $1,184,400 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.)

Date Account Titles and Explanation Debit Credit

(To record depreciation on equipment sold)

(To record depreciation on equipment retired)

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

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

$

$ :

:

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago