$ 4,035,000 $31,150,000 16,039,125 15,110,875 53,800,000 6,725,000 47,075,000 $6
ID: 2449269 • Letter: #
Question
$ 4,035,000
$31,150,000
16,039,125
15,110,875
53,800,000
6,725,000
47,075,000
$66,220,875
(a)
Date
Account Titles and Explanation
Debit
Credit
(To record depreciation on equipment sold)
(To record depreciation on equipment retired)
At December 31, 2014, Navaro Corporation reported the following plant assets.Land
$ 4,035,000
Buildings$31,150,000
Less: Accumulated depreciation—buildings16,039,125
15,110,875
Equipment53,800,000
Less: Accumulated depreciation—equipment6,725,000
47,075,000
Total plant assets$66,220,875
During 2015, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,959,000. May 1 Sold equipment that cost $807,000 when purchased on January 1, 2008. The equipment was sold for $228,650. June 1 Sold land for $2,152,000. The land cost $1,345,000. July 1 Purchased equipment for $1,479,500. Dec. 31 Retired equipment that cost $941,500 when purchased on December 31, 2005. No salvage value was received.
Explanation / Answer
Particulars
Debit
Credit
April1
Land A/c
$2959000
Cash
$2959000
May1
Depreciation A/c
$658645
Equipment A/c
$658645
May1
Cash A/c
$228650
Equipments A/c
$148355
Profit on Sale of Fixed Assets
$80295
June 1
Cash A/c
$2152000
Land A/c
$1345000
Profit on sale of Fixed assets
$807000
July 1
Equipment A/c
$1479500
Cash A/c
$1479500
Dec 31
Depreciation A/c
$941500
Equipment A/c
$941500
Particulars
Debit
Credit
April1
Land A/c
$2959000
Cash
$2959000
May1
Depreciation A/c
$658645
Equipment A/c
$658645
May1
Cash A/c
$228650
Equipments A/c
$148355
Profit on Sale of Fixed Assets
$80295
June 1
Cash A/c
$2152000
Land A/c
$1345000
Profit on sale of Fixed assets
$807000
July 1
Equipment A/c
$1479500
Cash A/c
$1479500
Dec 31
Depreciation A/c
$941500
Equipment A/c
$941500
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