Here are selected 2017 transactions of Sheffield Corporation. Jan. 1 Retired a p

Question

Here are selected 2017 transactions of Sheffield Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,000 and had a useful life of 10 years with no salvage value. June Sold a computer that was purchased on January 1, 2015. The computer cost $35,200 and had a useful life of 4 years with no salvage value. The computer was 30 sold for $5,900 cash. Dec. Sold a delivery truck for $9,210 cash. The truck cost $23,000 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with 31 a $4,000 salvage value. ournalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Sheffield 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. 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 for 2017)

Explanation / Answer

SOLUTION

* Accumulated Depreciation- Equipment =  ($35,200*2/4) = $17,600

= $17,400 + $4,400 = $22,000

** Gain on Disposal of Plant Assets = {$5,900 - ($35,200 - $22,000)}

= $7,300

Date Account titles and Explanation Debit ($) Credit ($) Jan.1 Accumulated Depreciation- Equipment 62,000 Equipment 62,000 June 30 Depreciation Expense ($35,200*1/4*6/12) 4,400 Accumulated Depreciation- Equipment 4,400 (To record depreciation expense for 2017) Cash 5,900 Accumulated Depreciation- Equipment* 22,000 Gain on Disposal of Plant Assets** 7,300 Equipment 35,200 (To record sale of computer) Dec.31 Depreciation Expense [($23,000-$4,000)*1/5] 3,800   Accumulated Depreciation- Equipment 3,800 (To record depreciation expense for 2017) Cash 9,210 Accumulated Depreciation- Equipment [($23,000-$4,000)*4/5] 15,200   Equipment 23,000 Gain on Disposal of Plant Assets 1,410 (To record sale of delivery truck)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.