See questions below

*Brief Exercise 9-11

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $954.9; land $226.7; patents and trademarks (at cost) $530.7; machinery and equipment $2,137.2; buildings $967; goodwill (at cost) $207.5; accumulated amortization $59.3; and accumulated depreciation $2,290.

Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

NIKE, INC.

Partial Balance Sheet

As of May 31, 2014

(in millions)

          $   $             :                     $     :        

*Exercise 9-7

Wang Co. has delivery equipment that cost $50,840 and has been depreciated $24,960.

Record entries for the disposal under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) It was scrapped as having no value.(b) It was sold for $37,200.(c) It was sold for $19,360.No.Account Titles and ExplanationDebitCredit(a)  (b)   (c)    

*Exercise 9-8

Here are selected 2014 transactions of Cleland Corporation.Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,160 and had a useful life of 10 years with no salvage value.June 30 Sold a computer that was purchased on January 1, 2012. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $5,630 cash.Dec. 31 Sold a delivery truck for $9,310 cash. The truck cost $23,600 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,290 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

DateAccount Titles and ExplanationDebitCredit   (To record depreciation expense for the first 6 months of 2014)        (To record depreciation expense for the year 2014)       

Broadening Your Perspective 9-1

The financial statements of Tootsie Roll are presented below.TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF

Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)

   For the year ended December 31,   2011 2010 2009  Net product sales $528,369  $517,149  $495,592   Rental and royalty revenue 4,136  4,299  3,739   Total revenue 532,505  521,448  499,331   Product cost of goods sold 365,225  349,334  319,775   Rental and royalty cost 1,038  1,088  852   Total costs 366,263  350,422  320,627   Product gross margin 163,144  167,815  175,817   Rental and royalty gross margin 3,098  3,211  2,887   Total gross margin 166,242  171,026  178,704   Selling, marketing and administrative expenses 108,276  106,316  103,755   Impairment charges —  —  14,000   Earnings from operations 57,966  64,710  60,949   Other income (expense), net 2,946  8,358  2,100   Earnings before income taxes 60,912  73,068  63,049   Provision for income taxes 16,974  20,005  9,892   Net earnings $43,938  $53,063  $53,157               Net earnings $43,938  $53,063  $53,157   Other comprehensive earnings (loss) (8,740) 1,183  2,845   Comprehensive earnings $35,198  $54,246  $56,002               Retained earnings at beginning of year. $135,866  $147,687  $144,949   Net earnings 43,938  53,063  53,157   Cash dividends (18,360) (18,078) (17,790)  Stock dividends (47,175) (46,806) (32,629)  Retained earnings at end of year $114,269  $135,866  $147,687               Earnings per share $0.76  $0.90  $0.89               Average Common and Class B Common shares outstanding 57,892  58,685  59,425  (The accompanying notes are an integral part of these statements.)  CONSOLIDATED STATEMENTS OF

Financial Position

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)

 Assets December 31,     2011 2010  CURRENT ASSETS:         Cash and cash equivalents $78,612  $115,976    Investments 10,895  7,996    Accounts receivable trade, less allowances of $1,731 and $1,531 41,895  37,394    Other receivables 3,391  9,961    Inventories:         Finished goods and work-in-process 42,676  35,416    Raw materials and supplies 29,084  21,236    Prepaid expenses 5,070  6,499    Deferred income taxes 578  689    Total current assets 212,201  235,167   PROPERTY, PLANT AND EQUIPMENT, at cost:         Land 21,939  21,696    Buildings 107,567  102,934    Machinery and equipment 322,993  307,178    Construction in progress 2,598  9,243      455,097  440,974    Less—Accumulated depreciation 242,935  225,482    Net property, plant and equipment 212,162  215,492   OTHER ASSETS:         Goodwill 73,237  73,237    Trademarks 175,024  175,024    Investments 96,161  64,461    Split dollar officer life insurance 74,209  74,441    Prepaid expenses 3,212  6,680    Equity method investment 3,935  4,254    Deferred income taxes 7,715  9,203    Total other assets 433,493  407,300    Total assets $857,856  $857,959   Liabilities and Shareholders’ Equity December 31,     2011 2010  CURRENT LIABILITIES:         Accounts payable $10,683  $9,791    Dividends payable 4,603  4,529    Accrued liabilities 43,069  44,185    Total current liabilities 58,355  58,505   NONCURRENT LIABILITES:         Deferred income taxes 43,521  47,865    Postretirement health care and life insurance benefits 26,108  20,689    Industrial development bonds 7,500  7,500    Liability for uncertain tax positions 8,345  9,835    Deferred compensation and other liabilities 48,092  46,157    Total noncurrent liabilities 133,566  132,046   SHAREHOLDERS’ EQUITY:         Common stock, $.69-4/9 par value—120,000 shares authorized—36,479 and 36,057 respectively, issued 25,333  25,040    Class B common stock, $.69-4/9 par value—40,000 shares authorized—21,025 and 20,466 respectively, issued 14,601  14,212    Capital in excess of par value 533,677  505,495    Retained earnings, per accompanying statement 114,269  135,866    Accumulated other comprehensive loss (19,953) (11,213)   Treasury stock (at cost)—71 shares and 69 shares, respectively (1,992) (1,992)   Total shareholders’ equity 665,935  667,408    Total liabilities and shareholders’ equity $857,856  $857,959  TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF

Cash Flows (in thousands)

     For the year ended December 31,       2011 2010 2009   CASH FLOWS FROM OPERATING ACTIVITIES:               Net earnings $43,938  $53,063  $53,157       Adjustments to reconcile net earnings to net cash provided by operating activities:                  Depreciation 19,229  18,279  17,862          Impairment charges —  —  14,000          Impairment of equity method investment —  —  4,400          Loss from equity method investment 194  342  233          Amortization of marketable security premiums 1,267  522  320          Changes in operating assets and liabilities:                  Accounts receivable (5,448) 717  (5,899)         Other receivables 3,963  (2,373) (2,088)         Inventories (15,631) (1,447) 455          Prepaid expenses and other assets 5,106  4,936  5,203          Accounts payable and accrued liabilities 84  2,180  (2,755)         Income taxes payable and deferred (5,772) 2,322  (12,543)         Postretirement health care and life insurance benefits 2,022  1,429  1,384          Deferred compensation and other liabilities 2,146  2,525  2,960          Others (708) 310  305       Net cash provided by operating activities 50,390  82,805  76,994    CASH FLOWS FROM INVESTING ACTIVITIES:                Capital expenditures (16,351) (12,813) (20,831)       Net purchase of trading securities (3,234) (2,902) (1,713)       Purchase of available for sale securities (39,252) (9,301) (11,331)       Sale and maturity of available for sale securities 7,680  8,208  17,511        Net cash used in investing activities (51,157) (16,808) (16,364)     CASH FLOWS FROM FINANCING ACTIVITIES:                  Shares repurchased and retired (18,190) (22,881) (20,723)         Dividends paid in cash (18,407) (18,130) (17,825)         Net cash used in financing activities (36,597) (41,011) (38,548)   Increase (decrease) in cash and cash equivalents (37,364) 24,986  22,082    Cash and cash equivalents at beginning of year 115,976  90,990  68,908    Cash and cash equivalents at end of year $78,612  $115,976  $90,990    Supplemental cash flow information                Income taxes paid $16,906  $20,586  $22,364        Interest paid $38  $49  $182        Stock dividend issued $47,053  $46,683  $32,538   (The accompanying notes are an integral part of these statements.)

Notes to Consolidated Financial Statements ($ in thousands)

PROPERTY, PLANT AND EQUIPMENT:

Depreciation is computed for financial reporting purposes by use of the straight-line method based on the useful lives of 20 to 35 years for building and 5 to 25 years for machinery and equipment. Depreciation expenses was $19,229, $18,279 and $17,862 in 2011, 2010 and 2009, respectively.

Goodwill and intangible assets:

In accordance with authoritative guidance, goodwill and intangible assets with indefinite lives are not amortized, but rather tested for impairment at least annually unless certain interim triggering events or circumstances require more frequent testing. All trademarks have been assessed by management to have indefinite lives because they are expected to generate cash flows indefinitely. The Company has completed its annual impairment testing of its goodwill and trademarks at December 31 of each of the years presented. As of December 31, 2009, management ascertained that certain trademarks were impaired, and recorded a pre-tax charge of $14,000. No impairments of intangibles were recorded in 2011 and 2010. This determination is made by comparing the carrying value of the asset with its estimated fair value, which is calculated using estimates including discounted projected future cash flows. If the carrying value of goodwill exceeds the fair value, a second step would measure the carrying value and implied fair value of goodwill. Management believes that all assumptions used for the impairment tests are consistent with those utilized by market participants performing similar valuations.

Answer the following questions.

 What were the total cost and book value of property, plant, and equipment at December 31, 2011? (Enter the amounts in thousands.)Total cost $Book value $ What was the amount of depreciation expense for each of the 3 years 2009–2011? (Hint: Use the statement of cash flows.)(Enter the amounts in thousands.)  Depreciation2009 $2010 $2011 $ Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased (capital expenditures) in 2011 and 2010? (Enter the amounts in thousands.)  20112010Property, plant, and equipment purchased 

Broadening Your Perspective 9-2

The financial statements of The Hershey Company and Tootsie Roll are presented below. THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF INCOME

  For the years ended December 31, 2011 2010 2009  In thousands of dollars except per share amounts         Net Sales $6,080,788  $5,671,009 $5,298,668  Costs and Expenses:           Cost of sales 3,548,896  3,255,801 3,245,531    Selling, marketing and administrative 1,477,750  1,426,477 1,208,672    Business realignment and impairment (credits) charges, net (886) 83,433 82,875      Total costs and expenses 5,025,760  4,765,711 4,537,078  Income before Interest and Income Taxes 1,055,028  905,298 761,590    Interest expense, net 92,183  96,434 90,459  Income before Income Taxes 962,845  808,864 671,131    Provision for income taxes 333,883  299,065 235,137  Net Income $628,962  $509,799 $435,994  Net Income Per Share—Basic—Class B Common Stock $2.58  $2.08 $1.77  Net Income Per Share—Diluted—Class B Common Stock $2.56  $2.07 $1.77  Net Income Per Share—Basic—Common Stock $2.85  $2.29 $1.97  Net Income Per Share—Diluted—Common Stock $2.74  $2.21 $1.90  Cash Dividends Paid Per Share:           Common Stock $1.3800  $1.2800 $1.1900    Class B Common Stock 1.2500  1.1600 1.0712  The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.  THE HERSHEY COMPANY

CONSOLIDATED BALANCE SHEETS

  December 31, 2011 2010  In thousands of dollars        ASSETS        Current Assets:          Cash and cash equivalents $693,686  $884,642     Accounts receivable—trade 399,499  390,061     Inventories 648,953  533,622     Deferred income taxes 136,861  55,760     Prepaid expenses and other 167,559  141,132       Total current assets 2,046,558  2,005,217   Property, Plant and Equipment, Net 1,559,717  1,437,702   Goodwill 516,745  524,134   Other Intangibles 111,913  123,080   Deferred Income Taxes 38,544  21,387   Other Assets 138,722  161,212       Total assets $4,412,199  $4,272,732   LIABILITIES AND STOCKHOLDERS’ EQUITY        Current Liabilities:          Accounts payable $420,017  $410,655     Accrued liabilities 612,186  593,308     Accrued income taxes 1,899  9,402     Short-term debt 42,080  24,088     Current portion of long-term debt 97,593  261,392       Total current liabilities 1,173,775  1,298,845   Long-term Debt 1,748,500  1,541,825   Other Long-term Liabilities 617,276  494,461       Total liabilities 3,539,551  3,335,131   Commitments and Contingencies —  —   Stockholders’ Equity:          The Hershey Company Stockholders’ Equity            Preferred Stock, shares issued: none in 2011 and 2010 —  —       Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in 2010 299,269  299,195       Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 60,632  60,706       Additional paid-in capital 490,817  434,865       Retained earnings 4,699,597  4,374,718       Treasury—Common Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 (4,258,962) (4,052,101)      Accumulated other comprehensive loss (442,331) (215,067)        The Hershey Company stockholders’ equity 849,022  902,316     Noncontrolling interests in subsidiaries 23,626  35,285         Total stockholders’ equity 872,648  937,601         Total liabilities and stockholders’equity $4,412,199  $4,272,732   THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

  For the years ended December 31, 2011 2010 2009  In thousands of dollars           Cash Flows Provided from (Used by) Operating Activities            Net income $628,962  $509,799  $435,994    Adjustments to reconcile net income to net cash provided from operations:            Depreciation and amortization 215,763  197,116  182,411    Stock-based compensation expense, net of tax of $15,127, $17,413 and $19,223, respectively 28,341  32,055  34,927    Excess tax benefits from stock-based compensation (13,997) (1,385) (4,455)   Deferred income taxes 33,611  (18,654) (40,578)   Gain on sale of trademark licensing rights, net of tax of $5,962 (11,072) —  —    Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively 30,838  77,935  60,823    Contributions to pension plans (8,861) (6,073) (54,457)   Changes in assets and liabilities, net of effects from business acquisitions and divestitures:            Accounts receivable—trade (9,438) 20,329  46,584    Inventories (115,331) (13,910) 74,000    Accounts payable 7,860  90,434  37,228    Other assets and liabilities (205,809) 13,777  293,272   Net Cash Provided from Operating Activities 580,867  901,423  1,065,749   Cash Flows Provided from (Used by) Investing Activities            Capital additions (323,961) (179,538) (126,324)   Capitalized software additions (23,606) (21,949) (19,146)   Proceeds from sales of property, plant and equipment 312  2,201  10,364    Proceeds from sales of trademark licensing rights 20,000  —  —    Business acquisitions (5,750) —  (15,220)  Net Cash (Used by) Investing Activities (333,005) (199,286) (150,326)  Cash Flows Provided from (Used by) Financing Activities            Net change in short-term borrowings 10,834  1,156  (458,047)   Long-term borrowings 249,126  348,208  —    Repayment of long-term debt (256,189) (71,548) (8,252)   Proceeds from lease financing agreement 47,601  —  —    Cash dividends paid (304,083) (283,434) (263,403)   Exercise of stock options 184,411  92,033  28,318    Excess tax benefits from stock-based compensation 13,997  1,385  4,455    Contributions from noncontrolling interests in subsidiaries —  10,199  7,322    Repurchase of Common Stock (384,515) (169,099) (9,314)  Net Cash (Used by) Financing Activities (438,818) (71,100) (698,921)  (Decrease) Increase in Cash and Cash Equivalents (190,956) 631,037  216,502   Cash and Cash Equivalents as of January 1 884,642  253,605  37,103   Cash and Cash Equivalents as of December 31 $693,686  $884,642  $253,605   Interest Paid $97,892  $97,932  $91,623   Income Taxes Paid 292,315  350,948  252,230  TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF

Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)

   For the year ended December 31,   2011 2010 2009  Net product sales $528,369  $517,149  $495,592   Rental and royalty revenue 4,136  4,299  3,739   Total revenue 532,505  521,448  499,331   Product cost of goods sold 365,225  349,334  319,775   Rental and royalty cost 1,038  1,088  852   Total costs 366,263  350,422  320,627   Product gross margin 163,144  167,815  175,817   Rental and royalty gross margin 3,098  3,211  2,887   Total gross margin 166,242  171,026  178,704   Selling, marketing and administrative expenses 108,276  106,316  103,755   Impairment charges —  —  14,000   Earnings from operations 57,966  64,710  60,949   Other income (expense), net 2,946  8,358  2,100   Earnings before income taxes 60,912  73,068  63,049   Provision for income taxes 16,974  20,005  9,892   Net earnings $43,938  $53,063  $53,157               Net earnings $43,938  $53,063  $53,157   Other comprehensive earnings (loss) (8,740)/td> 1,183  2,845   Comprehensive earnings $35,198  $54,246  $56,002               Retained earnings at beginning of year. $135,866  $147,687  $144,949   Net earnings 43,938  53,063  53,157   Cash dividends (18,360) (18,078) (17,790)  Stock dividends (47,175) (46,806) (32,629)  Retained earnings at end of year $114,269  $135,866  $147,687               Earnings per share $0.76  $0.90  $0.89               Average Common and Class B Common shares outstanding 57,892  58,685  59,425  (The accompanying notes are an integral part of these statements.)  CONSOLIDATED STATEMENTS OF

Financial Position

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)

 Assets December 31,     2011 2010  CURRENT ASSETS:         Cash and cash equivalents $78,612  $115,976    Investments 10,895  7,996    Accounts receivable trade, less allowances of $1,731 and $1,531 41,895  37,394    Other receivables 3,391  9,961    Inventories:         Finished goods and work-in-process 42,676  35,416    Raw materials and supplies 29,084  21,236    Prepaid expenses 5,070  6,499    Deferred income taxes 578  689    Total current assets 212,201  235,167   PROPERTY, PLANT AND EQUIPMENT, at cost:         Land 21,939  21,696    Buildings 107,567  102,934    Machinery and equipment 322,993  307,178    Construction in progress 2,598  9,243      455,097  440,974    Less—Accumulated depreciation 242,935  225,482    Net property, plant and equipment 212,162  215,492   OTHER ASSETS:         Goodwill 73,237  73,237    Trademarks 175,024  175,024    Investments 96,161  64,461    Split dollar officer life insurance 74,209  74,441    Prepaid expenses 3,212  6,680    Equity method investment 3,935  4,254    Deferred income taxes 7,715  9,203    Total other assets 433,493  407,300    Total assets $857,856  $857,959   Liabilities and Shareholders’ Equity December 31,     2011 2010  CURRENT LIABILITIES:         Accounts payable $10,683  $9,791    Dividends payable 4,603  4,529    Accrued liabilities 43,069  44,185    Total current liabilities 58,355  58,505   NONCURRENT LIABILITES:         Deferred income taxes 43,521  47,865    Postretirement health care and life insurance benefits 26,108  20,689    Industrial development bonds 7,500  7,500    Liability for uncertain tax positions 8,345  9,835    Deferred compensation and other liabilities 48,092  46,157    Total noncurrent liabilities 133,566  132,046   SHAREHOLDERS’ EQUITY:         Common stock, $.69-4/9 par value—120,000 shares authorized—36,479 and 36,057 respectively, issued 25,333  25,040    Class B common stock, $.69-4/9 par value—40,000 shares authorized—21,025 and 20,466 respectively, issued 14,601  14,212    Capital in excess of par value 533,677  505,495    Retained earnings, per accompanying statement 114,269  135,866    Accumulated other comprehensive loss (19,953) (11,213)   Treasury stock (at cost)—71 shares and 69 shares, respectively (1,992) (1,992)   Total shareholders’ equity 665,935  667,408    Total liabilities and shareholders’ equity $857,856  $857,959  TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF

Cash Flows (in thousands)

     For the year ended December 31,       2011 2010 2009   CASH FLOWS FROM OPERATING ACTIVITIES:               Net earnings $43,938  $53,063  $53,157       Adjustments to reconcile net earnings to net cash provided by operating activities:                  Depreciation 19,229  18,279  17,862          Impairment charges —  —  14,000          Impairment of equity method investment —  —  4,400          Loss from equity method investment 194  342  233          Amortization of marketable security premiums 1,267  522  320          Changes in operating assets and liabilities:                  Accounts receivable (5,448) 717  (5,899)         Other receivables 3,963  (2,373) (2,088)         Inventories (15,631) (1,447) 455          Prepaid expenses and other assets 5,106  4,936  5,203          Accounts payable and accrued liabilities 84  2,180  (2,755)         Income taxes payable and deferred (5,772) 2,322  (12,543)         Postretirement health care and life insurance benefits 2,022  1,429  1,384          Deferred compensation and other liabilities 2,146  2,525  2,960          Others (708) 310  305       Net cash provided by operating activities 50,390  82,805  76,994    CASH FLOWS FROM INVESTING ACTIVITIES:                Capital expenditures (16,351) (12,813) (20,831)       Net purchase of trading securities (3,234) (2,902) (1,713)       Purchase of available for sale securities (39,252) (9,301) (11,331)       Sale and maturity of available for sale securities 7,680  8,208  17,511        Net cash used in investing activities (51,157) (16,808) (16,364)     CASH FLOWS FROM FINANCING ACTIVITIES:                  Shares repurchased and retired (18,190) (22,881) (20,723)         Dividends paid in cash (18,407) (18,130) (17,825)         Net cash used in financing activities (36,597) (41,011) (38,548)   Increase (decrease) in cash and cash equivalents (37,364) 24,986  22,082    Cash and cash equivalents at beginning of year 115,976  90,990  68,908    Cash and cash equivalents at end of year $78,612  $115,976  $90,990    Supplemental cash flow information                Income taxes paid $16,906  $20,586  $22,364        Interest paid $38  $49  $182        Stock dividend issued $47,053  $46,683  $32,538   (The accompanying notes are an integral part of these statements.) 

Based on the information in these financial statements and the accompanying notes and schedules, compute the following values for each company in 2011. (Round all percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g. 15.21.)

(1) Return on assets.

  Return on assets Tootsie Roll %Hershey Company %

(2) Profit margin (use “Total Revenue”).

  Profit margin Tootsie Roll %Hershey Company %

(3) Asset turnover.

  Asset turnover Tootsie Roll timesHershey Company times 

*Problem 9-2A

At December 31, 2014, Navaro Corporation reported the following plant assets.Land   $ 3,279,000Buildings $32,600,000  Less: Accumulated depreciation—buildings 13,034,025 19,565,975Equipment 43,720,000  Less: Accumulated depreciation—equipment 5,465,000 38,255,000Total plant assets   $61,099,975

During 2015, the following selected cash transactions occurred.

Apr. 1 Purchased land for $2,404,600.May 1 Sold equipment that cost $655,800 when purchased on January 1, 2008. The equipment was sold for $185,810.June 1 Sold land for $1,748,800. The land cost $1,093,000.July 1 Purchased equipment for $1,202,300.Dec. 31 Retired equipment that cost $765,100 when purchased on December 31, 2005. No salvage value was received. Journalize the transactions. Navaro 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. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit  nbsp;(To record depreciation on equipment sold)           (To record depreciation on equipment retired)     Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date.Account Titles and ExplanationDebitCreditDec. 31  (To record depreciation on buildings.)  31  Prepare the plant assets section of Navaro’s balance sheet at December 31, 2015. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2015 transactions.) (List Plant Assets in order of Land, Building and Equipment.)NAVARO CORPORATION

Partial Balance Sheet

December 31, 2015

          $   $   :          :         $  

*Problem 8-3A

Presented below is an aging schedule for Bosworth Company.Customer Total Not Yet Due Number of Days Past Due   1–30 31–60 61–90 Over 90Aneesh $ 29,600   $ 9,600 $20,000    Bird 47,500 $ 47,500        Cope 56,700 5,800 8,700   $42,200  DeSpears 46,300         $46,300Others 130,900 72,200 33,200 25,500       $311,000 $125,500 $51,500 $45,500 $42,200 $46,300Estimated percentage uncollectible   3% 6% 13% 23% 74%Total estimated bad debts $ 56,738 $ 3,765 $3,090 $5,915 $ 9,706 $34,262

At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $6,200.

 Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit Post the adjusting entry for bad debts at December 31, 2013.Bad Debts ExpenseAllowance for Doubtful Accounts Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)1.  March 1, a $660 customer balance originating in 2013 is judged uncollectible.2.  May 1, a check for $660 is received from the customer whose account was written off as uncollectible on March 1.No.DateAccount Titles and ExplanationDebitCredit1.  2.    (To reinstate account previously written off)       Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in the previous part.)Allowance for Doubtful Accounts2013 12/31 Bal.6,200  12/31 50,538  12/31 Bal.56,7382014      Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,500 and the aging schedule indicates that total estimated bad debts will be $46,000.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit