Exercise 9-9 Presented below are selected transactions at Ridge Company for 2017

Question

Exercise 9-9 Presented below are selected transactions at Ridge Company for 2017 Jan. Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $60,600 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2014. The computer cost $40,200. It had a useful life of 5 years with no salvage value. The computer was sold for $13,800. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2013. The truck cost $41,160. It was depreciated based on a 6-year useful life with a $3,000 salvage value. on enuy 1. 201 Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ridge Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2016.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations.)

Explanation / Answer

Journal Entries Date Account Title and Explanation Debit Credit 1-Jan Accumulated Depreciation -Machine 60600 To Machine 60600 (Being retired a machinery that was Purchased on January 2007) 30-Jun Depreciation 4020 To Accumulated Depreciation- Computer 4020 (Being Depreciation Provided on Computer upto 30th June 2017) 30-Jun Accumulated Depreciation -Machine 28140 Cash 13800 To Computer 40200 To Gain on sale of computer 1740 (Being Sale of Computer ) 31-Dec Depreciation 6360 To Accumulated Depreciation- Truck 6360 (Being Depreciation Provided on Truck) Accumulated Depreciation -Truck 31800 Loss on Disposal 9360 To Truck 41160 (Being Sale of Computer ) W.Note -1 Date of Purchase 1/1/2007 Amount 60600 Useful Life 10 Salvage Date of Sale 1/1/2017 Used life (In years)              10.00 Depreciation                     -   W.Note -2 Date of Purchase 1/1/2014 Purchase Amount 40200 Useful Life 5 Salvage Date of Sale 30/06/17 Sale Amount 13800 Used life (In years)                 3.50 Depreciation Upto June 30      28,140.00 Net book Value Upto June 30      12,060.00 Sale Amount      13,800.00 Gain from sale of Computer        1,740.00 W.Note -3 Date of Purchase 1/1/2013 Purchase Amount 41160 Useful Life 6 Salvage 3000 Date of Sale 31/12/2017 Sale Amount 0 Used life                 5.00 Depreciation Upto Dec. 31      31,800.00 Net book Value Upto Dec. 31        9,360.00 Accumulated Depreciation 31800

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