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ate Account Titles and Explanation Debit Credit 31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Buildings (To record builuny uepretiauIOT) 31 Depreciation Expense Accumulated Depreciation-Equipment

ate Account Titles and Explanation Debit Credit 31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Buildings (To record builuny uepretiauIOT) 31 Depreciation Expense Accumulated Depreciation-Equipment

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Novak 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Buildings (To record builuny uepretiadlion) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record equipment depreciation)
Transcribed Image Text:Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Novak 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Buildings (To record builuny uepretiadlion) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record equipment depreciation)
At December 31, 2022, Novak Corp. reported the following plant assets. Land $ 3,710,000 Buildings $27,420,000 Less: Accumulated depreciation-buildings 12,339,000 15,081,000 Equipment 47,200,000 Less: Accumulated depreciation-equipment 5,900,000 41,300,000 Total plant assets $60,091,000 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,030,000. May 1 Sold equipment that cost $960,000 when purchased on January 1, 2016. The equipment was sold for $288,000. June 1 Sold land for $1,500,000. The land cost $997,000. July 1 Purchased equipment for $1,097,000. Dec. 31 Retired equipment that cost $703,000 when purchased on December 31, 2013. No salvage value was received.
Transcribed Image Text:At December 31, 2022, Novak Corp. reported the following plant assets. Land $ 3,710,000 Buildings $27,420,000 Less: Accumulated depreciation-buildings 12,339,000 15,081,000 Equipment 47,200,000 Less: Accumulated depreciation-equipment 5,900,000 41,300,000 Total plant assets $60,091,000 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,030,000. May 1 Sold equipment that cost $960,000 when purchased on January 1, 2016. The equipment was sold for $288,000. June 1 Sold land for $1,500,000. The land cost $997,000. July 1 Purchased equipment for $1,097,000. Dec. 31 Retired equipment that cost $703,000 when purchased on December 31, 2013. No salvage value was received.
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