Reference no: EM131793383
Problem-
At December 31, 2014, Navaro Corporation reported the following plant assets.
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Land
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$3,894,000
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Buildings
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$34,010,000
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|
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Less: Accumulated depreciation-buildings
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15,478,650
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18,531,350
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Equipment
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51,920,000
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|
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Less: Accumulated depreciation-equipment
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6,490,000
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45,430,000
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Total plant assets
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$67,855,350
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During 2015, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,855,600.
May 1 Sold equipment that cost $778,800 when purchased on January 1, 2008. The equipment was sold for $220,660.
June 1 Sold land for $2,076,800. The land cost $1,298,000.
July 1 Purchased equipment for $1,427,800.
Dec. 31 Retired equipment that cost $908,600 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.