Q1-Q2-

Problem 9-02A (Part Level Submission) At December 31, 2022, Novak Corporation reported the following plant assets. Land $ 3,198,000 Buildings Less: Accumulated depreciation-buildings Equipment 13,897,950 $26,610,000 12,712,050 42,640,000 5,330,000 Less: Accumulated depreciation-equipment 37,310,000 Total plant assets $54,405,950 During 2023, the following selected cash transactions occurred. Apr. 1 May 1 June 1 July 1 Dec. 31 Purchased land for $2,345,200. Sold equipment that cost $639,600 when purchased on January 1, 2016. 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, 2013. No salvage value was received. 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 2,345,200 Cash 2,345,200 May 1 Depreciation Expense 21,320 Accumulated Depreciation-Equipment 21,320 (To record depreciation on equipment sold) Cash 181,220 Accumulated Depreciation-Equipment 469,040 Equipment 639,600 Gain on Disposal of Plant Assets 10,660 June 1 Cash 1,705,600 Land 1,066,000 C Land 1,066,000 Gain on Disposal of Plant Assets 639,600 July 1 Equipment 1,172,600 Cash 1,172,600 Dec. 31 A Depreciation Expense 74,620 Accumulated Depreciation-Equipment 74,620 (To record depreciation on equipment retired) Accumulated Depreciation-Equipment 746,200 Equipment 746,200 (b) Your answer is partially correct. Try again. Record adjusting entries for depreciation for 2023. (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 Dec. 31 Accumulated Depreciation-Equipment 746,200 X X Equipment 746,200 (To record depreciation on buildings.) X Dec. 31 Accumulated Depreciation Equipment x 74,620 Equipment 74,620 (To record depreciation on equipment.) These are selected 2022 transactions for Bridgeport Corporation: Jan. 1 Purchased a copyright for $90,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $33,000. Sept. 1 Purchased a small company and recorded goodwill of $120,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automatically indented when the 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 Dec. 31 Amortization Expense 15,000 Cop ihts 15,000 (To record amortization of Copyrights) x Dec. 31 Amortization Expense 13,750 Patents 13,750 (To record amortization of Patents) x Dec. 31 (To record amortization of Goodwill)