At December 31, 2014, Navaro Corporation reported the following plant assets. La

Question

At December 31, 2014, Navaro Corporation reported the following plant assets. Land $ 4,119,000 Buildings $30,300,000 Less: Accumulated depreciation—buildings 16,373,025 13,926,975 Equipment 54,920,000 Less: Accumulated depreciation—equipment 6,865,000 48,055,000 Total plant assets $66,100,975 During 2015, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,020,600. May 1 Sold equipment that cost $823,800 when purchased on January 1, 2008. The equipment was sold for $233,410. June 1 Sold land for $2,196,800. The land cost $1,373,000. July 1 Purchased equipment for $1,510,300. Dec. 31 Retired equipment that cost $961,100 when purchased on December 31, 2005. No salvage value was received. Prepare the plant assets section of Navaro’s balance sheet at December 31, 2015. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2015 transactions.)

Explanation / Answer

                            LAND A/c

                     BUILDING A /c

                EQUIPMENT a/c

01/05/2015 by profit & loss

(354313-233410)

31/12/2015 by depriciation

                 by bank

               

     by bal c/d          

31605

221237

41516864

total of plan asset at dec 2015 =53684302

31/12/2014 By bal c/d 4119000 1/01/2015 To Bal b/d 4119000 1/06/2015 By Cash 2196800 1/04/2015 To Cash 3020600 1/06/2015 To profit and loss a/c 823800 31/12/2015 By bal c/d 5766600 7963400 7963400

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