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Problem 9-2A (Part Level Submission) At December 31, 2017, Novak Corporation reported the following plant assets. $ 3,198,000 $26,610,000 12,712,050 13,897,950 Land Buildings Less: Accumulated
Problem 9-2A (Part Level Submission) At December 31, 2017, Novak Corporation reported the following plant assets. $ 3,198,000 $26,610,000 12,712,050 13,897,950 Land Buildings Less: Accumulated depreciation, buildings Equipment Less: Accumulated depreciation, equipment Total plant assets 42,640,000 5,330,000 37,310,000 $54,405,950 During 2018, the following selected cash transactions occurred. Apr. 1 1 May June July Purchased land for $2,345,200. Sold equipment that cost $639,600 when purchased on January 1, 2011. The equipment was sold for $181,220. Sold land for $1,705,600. The land cost $1,066,000. Purchased equipment for $1,172,600. Retired equipment that cost $746,200 when purchased on December 31, 2008. No salvage value was received. 1 Dec. 31 Journalize the transactions. Novak 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. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit April 1 Land 2345200 Cash 2345200 May 1 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment sold) cash Accumulated Depreciation-Equipment Gain on Disposal of Plant Assets Equipment June 1 Cash Land Gain on Disposal of Land July 1 Equipment Cash Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment retired) Accumulated Depreciation-Equipment Equipment Click if you would like to Show Work for this question: Open Show Work
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