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Need some help with this Accounting assignment. I have 90% correct, and need help finishing it. Please explain the calculations involved so that I can
Need some help with this Accounting assignment. I have 90% correct, and need help finishing it. Please explain the calculations involved so that I can learn from it.
Problem 9-2A At December 31, 2014, Navaro Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation buildings Equipment Less: Accumulated depreciation equipment Total plant assets $ 4,344,000 $27,510,000 17,267,400 10,242,600 57,920,000 7,240,000 50,680,000 $65,266,600 During 2015, the following selected cash transactions occurred. Apr. May 1 Purchased land for $3,185,600. 1 Sold equipment that cost $868,800 when purchased on January 1, 2008. The equipment was sold for $246,160. June 1 Sold land for $2,316,800. The land cost $1,448,000. July 1 Purchased equipment for $1,592,800. Dec. 31 Retired equipment that cost $1,013,600 when purchased on December 31, 2005. No salvage value was received. Your answer is correct. 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.) Dat Account Titles and e Explanation Debi Credi t t Equipment 1592800 Cash 1592800 Depreciatio 101360 Accumulate Show List of Accounts Show Solution Show Answer (To record depreciation on equipment retired) Link to Text Accumulate 101360 1013600 Equipment 1013600 Your answer is partially correct. Try again. Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Show of Accounts Dec. List Depreciatio 31 to Text Link Date. Accumulate Debit Credit 687750 687750 (To record depreciation on buildings.) Your answer is partially correct. Try again. Depreciatio 31 55957960 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.) Accumulate (List Plant Assets in order of Land, Building and Equipment.) 55957960 NAVARO CORPORATION Partial Balance Sheet December 31, 2015 $ Land Buildings 6081600 $ 27510000 : Accumulate Equipment 17955150 9554850 57630400 : Accumulate 11243720 46386680 $ 62023130Step by Step Solution
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