| Problem 9-2A At December 31, 2014, Navaro Corporation reported the following plant assets. | Land | $3,234,000 | | Buildings | $29,390,000 | | Less: Accumulated depreciationbuildings | 12,855,150 | 16,534,850 | | Equipment | 43,120,000 | | Less: Accumulated depreciationequipment | 5,390,000 | 37,730,000 | | Total plant assets | $57,498,850 | During 2015, the following selected cash transactions occurred. | Apr. | 1 | Purchased land for $2,371,600. | | May | 1 | Sold equipment that cost $646,800when purchased on January 1, 2008. The equipment was sold for $183,260. | | June | 1 | Sold land for $1,724,800. The land cost $1,078,000. | | July | 1 | Purchased equipment for $1,185,800. | | Dec. | 31 | Retired equipment that cost $754,600when purchased on December 31, 2005. No salvage value was received. | |
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| 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) | | | | | | | | | | SHOW LIST OF ACCOUNTS | | LINK TO TEXT | | |
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| 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 | | | | | | | | | SHOW LIST OF ACCOUNTS | | LINK TO TEXT | | |
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| 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: | | | | | | | AddLess: | | | | 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 | | $ | |
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