Problem 9 3A Presented here are selected transactions for Pine Campany for 2014

Question

Problem 9 3A Presented here are selected transactions for Pine Campany for 2014 Jan Retred a plece of machinery that was purchased on January 1, 2004, The machine cost $69,200 on that date and had a useful life of 10 years with no salvage value. June 3D sold a computer that was purchased on January 1, 2011. The computer cost $27,000 and had a useful life of 5 years with no salvage value. The computer was sold for $11,160. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2009. The truck cost 51,000 and was depreciated based on an 8-vear useful lite with a $4,100 salvage value. lournalize all entries required on the above dates, including entries to update depreciation, where applicable, on assats disposed of. Pine Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2013.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically Indented when amount Is entered. Do not indent manually, Round answers to o decimal places, e.g. 5,250.) Date Account Tidles and Explanation Debit Credit lo record depreciation an computer sold) (To record depreciation on truck sold)

Explanation / Answer

Date Account titles & Explanations Debit Credit 1-Jan Accumulated depreciatio 69,200 Machinery 69,200 30-Jun Depreciation expense 2700 Accumulated depreciation 2,700 (27000/5)*6/12 Cash 11,160 Accumulated depreciation(5400*3+2700) 18900 Gain on sale 3060 Computer 27,000 31-Dec Depreciation expense 5,863 Accumulated depreciation 5,863 (51000-4100)/8 Accumulated depreciation(5862.5*6) 35175 loss on disposal 15,825 Computer 51,000

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