In: Accounting
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.)
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.