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In: Accounting

Novak Corp.’s December 31, 2020 trial balance includes the following accounts: Inventory $140,000; Buildings $217,000; Accumulated...

Novak Corp.’s December 31, 2020 trial balance includes the following accounts: Inventory $140,000; Buildings $217,000; Accumulated Depreciation—Equipment $20,100; Equipment $207,000; Land Held for Speculation $47,000; Accumulated Depreciation—Buildings $46,100; Land $75,000; Equipment Under Lease $248,000; and Accumulated Depreciation—Leased Equipment $103,800.

Prepare the property, plant, and equipment section of the statement of financial position. (List in order of Property, Plant and Equipment.)

Solutions

Expert Solution

Solution:

Novak Corp.`s
Statement of Finanacial Position[Partial]
As on December 31, 2020
Property,plant, and equipment:
Land $          75,000
Buildings $   217,000
Less: Accumulated Depreciation--Building $   (46,100) $        170,900
Equipment $   207,000
Less: Accumulated Depreciation-Equipment $   (20,100) $        186,900
Equipment Under Lease $   248,000
Less: Accumulated Depreciation-Leased Equipment $ (103,800) $        144,200
Total Property, plant and equipment $        577,000

Notes:

1) Inventory is current asset and land held for speculation is investments. So, there are not considered in property, plant and equipment section.


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