Problem - At December 31, 2014, Navaro Corporation reported the following plant assets.
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Land
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$ 3,036,000
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Buildings
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$35,400,000
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Less: Accumulated depreciation-buildings
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12,068,100
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23,331,900
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Equipment
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40,480,000
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Less: Accumulated depreciation-equipment
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5,060,000
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35,420,000
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Total plant assets
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$61,787,900
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During 2015, the following selected cash transactions occurred.
Apr. 1 Purchased land for $2,226,400.
May 1 Sold equipment that cost $607,200 when purchased on January 1, 2008. The equipment was sold for $172,040.
June 1 Sold land for $1,619,200. The land cost $1,012,000.
July 1 Purchased equipment for $1,113,200.
Dec. 31 Retired equipment that cost $708,400 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.
Record adjusting entries for depreciation for 2015.
Prepare the plant assets section of Navaro's balance sheet at December 31, 2015.