Exercise 9-8 Here are selected 2017 transactions of Riverbed Corporation. cost $

Question

Exercise 9-8 Here are selected 2017 transactions of Riverbed Corporation. cost $62, Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,200 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2015. The computer cost $36,200 and had a useful life of 4 years with no salvage value. The computer was sold for $5,800 cash Dec. 31 Sold a delivery truck for $9,450 cash. The truck cost $24,300 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $4,200 salvage value Sold a delivery truck for sp.urchased on January 1, 2013. Te Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Riverbed 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation expense for 2017) (To record sale of computer)

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 1 Accumlated depreciation-Machinery 62200 Machinery 62200 June 30 Depreciation expense-Computer (36200/4)*6/12 4525   Accumlated depreciation-computer 4525 (To record depreciation for 2017) June 30 Cash 5800 Accumlated depreciation-computer (36200/4)*2.5 22625 Loss on disposal of computer 7775 Computer 36200 (To record sale of computer) Dec 31 Depreciation expense-Delivery truck (24300-4200/5) 4020 Accumlated depreciation-delivery truck 4020 (To record depreciation for 2017) Dec 31 Cash 9450 Accumlated depreciation-delivery truck (4020*4) 16080 Gain on disposal of delivery truck 1230 Delivery truck 24300 (To record sale of delivery truck)

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