Exercise 9-8 Here are selected 2017 transactions of Monty Corporation Jan. 1 Ret

Question

Exercise 9-8 Here are selected 2017 transactions of Monty Corporation Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,800 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 $36,000 and had a useful life of 4 years with no salvage value. The computer was 30 Dec. 31 sold for $4,000 cash Sold a delivery truck for $9,400 cash. The truck cost $23,800 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,700 salvage value ournalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Monty 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 Debit Credit Account Titles and Explanation Accumulated Depreciation-Equipment Equipment Jan. 1 une 30Depreciation Expense acc (To record depreciation expense for 2017) Cash Loss on Disposal of Plant Assets Equipment

Explanation / Answer

1-Jan Accumulated depreciation- Equipment $ 61,800 Equipment $ 61,800 30-Jun Depreciation expenses ($36,000/4 *6 m/12m) $    4,500 Accumulated depreciation - Computer $    4,500 (To record depreciation expense for 2017) 30-Jun Cash $    4,000 Accumulated depreciation - Computer ($4,500+($36,000/4*2) $ 22,500 Loss on disposal of plant assets $    9,500 Computer $ 36,000 31-Dec Depreciation expenses (($23,800-3,700)/5 ) $    4,020 Accumulated depreciation - Computer $    4,020 (To record depreciation expense for 2017) 31-Dec Cash $    9,400 Accumulated depreciation - Computer ($4,020+(($23,800-$3,700)/5*3)) $ 16,080 Truck $ 23,800 Gain on sale of equipment $    1,680 (To record sale of delivery truck)

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