At December 31, 2011, Craig Corporation reported these plant assets. Land $4,000,000 Buildings $28,800,000 Less: Accumulated depreciation-building $11,520,000 $17,280,000 ___________ Equipement $48,000,000 Less: Accumulated depreciation-equipment $ 5,000,000 $43,000,000 ___________ Total plant assets $64,280,000 During 2012, the following selected cash transactions occured. April 1. Purchased land for $2,600,000 May 1. Sold equipment that cost $750,000 when purchased on January 1, 2007. The equipment was sold for $367,000. June 1. Sold land purchased on June 1, 2000, for $1,800,000. The land cost $800,000. Sept. 1. Purchased equipment for $840,000. Dec. 31. Retired fully depreciated equipment that cost $470,000 when purchased on December 31, 2002. No salvage value was recieved a) Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2012 transactions). Craig uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year 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 retirment. b) Record adjusting entries for depreciation for 2012. (Note: The only assets that are fully depreciated are those that were retired on December 31.) c) Prepare the plant assets section of Craig's balance sheet at December 31, 2012.
At December 31, 2011, Craig Corporation reported these plant assets. Land $4,000,000 Buildings $28,800,000 Less: Accumulated depreciation-building $11,520,000 $17,280,000 ___________ Equipement $48,000,000 Less: Accumulated depreciation-equipment $ 5,000,000 $43,000,000 ___________ Total plant assets $64,280,000 During 2012, the following selected cash transactions occured. April 1. Purchased land for $2,600,000 May 1. Sold equipment that cost $750,000 when purchased on January 1, 2007. The equipment was sold for $367,000. June 1. Sold land purchased on June 1, 2000, for $1,800,000. The land cost $800,000. Sept. 1. Purchased equipment for $840,000. Dec. 31. Retired fully depreciated equipment that cost $470,000 when purchased on December 31, 2002. No salvage value was recieved a) Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2012 transactions). Craig uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year 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 retirment. b) Record adjusting entries for depreciation for 2012. (Note: The only assets that are fully depreciated are those that were retired on December 31.) c) Prepare the plant assets section of Craig's balance sheet at December 31, 2012.
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Problem 9-2A (Part Level Submission)
At December 31, 2014, Navaro Corporation reported the followingplant assets.
| Land | $ 5,196,000 | |||
| Buildings | $30,050,000 | |||
| Less: Accumulated depreciationâbuildings | 20,654,100 | 9,395,900 | ||
| Equipment | 69,280,000 | |||
| Less: Accumulated depreciationâequipment | 8,660,000 | 60,620,000 | ||
| Total plant assets | $75,211,900 |
During 2015, the following selected cash transactions occurred.
| Apr. | 1 | Purchased land for $3,810,400. | |
| May | 1 | Sold equipment that cost $1,039,200 when purchased on January1, 2008. The equipment was sold for $294,440. | |
| June | 1 | Sold land for $2,771,200. The land cost $1,732,000. | |
| July | 1 | Purchased equipment for $1,905,200. | |
| Dec. | 31 | Retired equipment that cost $1,212,400 when purchased onDecember 31, 2005. No salvage value wasreceived. |
Prepare the plant assets section of Navaroâs balance sheet atDecember 31, 2015. (Hint: You may wish to set up Taccounts, post beginning balances, and then post 2015transactions.) (List Plant Assets in order of Land,Building and Equipment.)
