Problem 9-3A Oriole Company had the following assets on January 1, 2017. ASSIGNM
ID: 2519473 • Letter: P
Question
Problem 9-3A Oriole Company had the following assets on January 1, 2017. ASSIGNMENT RESOURCES Post-Class Chpt 9A Problem 9-2A (Part Level Submission) Problem 9-8A (Part Level Submission) Problem 9-3A G Expand Your Critical Thinking 9-3 Useful Life (in years) 10 Salvage Value $0 Item Machinery Forklift Truck Cost $58,220 24,600 27,392 Purchase Date Jan. 1, 2007 Jan. 1, 2014 Jan. 1, 2012 2,464 Review Score Review Results by Study Objective During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $9,840. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation expense on forklift) June 30 To remont sale of forkliftiExplanation / Answer
Answer
Item
Cost
Salvage Value
Depreciable base
Life
Annual SLM depreciation
Years passed till 31 Dec 2016
Accumulated Depreciation till 31 Dec 2016
Machinery
$ 58,220.00
$ -
$ 58,220.00
10
$ 5,822.00
10
$ 58,220.00
Forklift
$ 24,600.00
$ -
$ 24,600.00
5
$ 4,920.00
3
$ 14,760.00
Truck
$ 27,392.00
$ 2,464.00
$ 24,928.00
8
$ 3,116.00
5
$ 15,580.00
Item
Cost
Depreciation for 2017 till disposal
Total accumulated Depreciation at the time of disposal
Book Value at the time of disposal
Retired/Sold for
Gain (Loss)
Machinery
$ 58,220.00
$ -
$ 58,220.00
$ -
$ -
$ -
Forklift
$ 24,600.00
$ 2,460.00 [6 months]
$ 17,220.00
$ 7,380.00
$ 9,840.00
$ 2,460.00
Truck
$ 27,392.00
$ 3,116.00 [12 months]
$ 18,696.00
$ 8,696.00
$ -
$ (8,696.00)
Date
Accounts Title
Debit
Credit
01-Jan-17
Accumulated Depreciation-machinery
$ 58,220.00
Machinery
$ 58,220.00
(machinery retired)
30-Jun-17
Depreciation expense - Forklift
$ 2,460.00
Accumulated Depreciation - Forklift
$ 2,460.00
(6 months depreciation)
30-Jun-17
Cash
$ 9,840.00
Accumulated Depreciation - Forklift
$ 17,220.00
Gain on Sale
$ 2,460.00
Forklift
$ 24,600.00
(sale of forklift)
31-Dec-17
Depreciation expense - Truck
$ 3,116.00
Accumulated Depreciation - Truck
$ 3,116.00
(2017 depreciation)
31-Dec-17
Accumulated Depreciation - Truck
$ 18,696.00
Loss on Sale
$ 8,696.00
Truck
$ 27,392.00
Item
Cost
Salvage Value
Depreciable base
Life
Annual SLM depreciation
Years passed till 31 Dec 2016
Accumulated Depreciation till 31 Dec 2016
Machinery
$ 58,220.00
$ -
$ 58,220.00
10
$ 5,822.00
10
$ 58,220.00
Forklift
$ 24,600.00
$ -
$ 24,600.00
5
$ 4,920.00
3
$ 14,760.00
Truck
$ 27,392.00
$ 2,464.00
$ 24,928.00
8
$ 3,116.00
5
$ 15,580.00
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