At December 31, 2014, Navaro Company reported the following as plant assets.
Land $3,000,000
Buildings $26,500,000
Less: Accumulated depreciation-buildings 11,925,000 14,575,000
Equipment 40,000,000
Less: Accumulated depreciation-equipment 5,000,000 35,000,000
Total plant assets $52,575,000
During 2015, the following selected cash transactions occurred.
April 1 Purchased land for $2,200,000.
May 1 Sold equipment that cost $600,000 when purchased on January 1, 2008.The equipment was sold for $170,000.
June 1 Sold land for $1,600,000.The land cost $1,000,000.
July 1 Purchased equipment for $1,100,000.
Dec. 31 Retired equipment that cost $700,000 when purchased on December 31, 2005. No salvage value was received.
Journalize the above transactions. The company 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 retirement. (List multiple debit/credit entries in descending order of amount.)
Record adjusting entries for depreciation for 2015.
Prepare the plant assets section of Jimenez's balance sheet at December 31, 2015.