70.2K

Verified Solution

Link Copied!

At December 31, 2017, Novak Corporation reported the followingplant assets. Land $ 3,198,000 Buildings $26,610,000 Less:Accumulated depreciation—buildings 12,712,050 13,897,950 Equipment42,640,000 Less: Accumulated depreciation—equipment 5,330,00037,310,000 Total plant assets $54,405,950 During 2018, thefollowing selected cash transactions occurred. Apr. 1 Purchasedland for $2,345,200. May 1 Sold equipment that cost $639,600 whenpurchased on January 1, 2011. The equipment was sold for $181,220.June 1 Sold land for $1,705,600. The land cost $1,066,000. July 1Purchased equipment for $1,172,600. Dec. 31 Retired equipment thatcost $746,200 when purchased on December 31, 2008. No salvage valuewas received. Collapse question part (a) Journalize thetransactions. Novak uses straight-line depreciation for buildingsand equipment. The buildings are estimated to have a 40-year usefullife and no salvage value; the equipment is estimated to have a10-year useful life and no salvage value. Update depreciation onassets disposed of at the time of sale or retirement. (Recordentries in the order displayed in the problem statement. Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts.)