Exercise 10-9 Partially correct answer. Your answer is partially correct. Try ag
ID: 2575103 • Letter: E
Question
Exercise 10-9
Partially correct answer. Your answer is partially correct. Try again. Presented below are selected transactions at Ridge Company for 2017. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,400 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 $42,900. It had a useful life of 5 years with no salvage value. The computer was sold for $15,100.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2013. The truck cost $35,340. It was depreciated based on a 6-year useful life with a $3,000 salvage value.
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
Explanation / Answer
Journal entries :
date accounts & explanation debit credit jan 1 Accumlated depreciation - machinery 62400 Machinery a/c 62400 (To record machine retired) June 30 Depreciation expenses a/c (42900/5)*6/12 4290 Accumlated depreciaiton-computer 4290 (To record update depreciation) June 30 Cash a/c 15100 Accumlated depreciation-computer a/c (8580*3.5) 30030 Gain on sale of computer 2230 Computer a/c 42900 (TO record sale of computer) Dec 31 Depreciation expenses a/c (35340-3000)/6 5390 Accumlated derpeciation-delivery truck a/c 5390 (To record depreciation) Dec 31 Accumlated depreciation a/c (5390*5) 26950 Loss on discard of delivery truck a/c 8390 Delivery truck a/c 35340 (TO record discard of delivery truck)Related Questions
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