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fill in the blanks (notice the number of accounts titles, ALL BLANKS FOR ACCOUNT

ID: 2431643 • Letter: F

Question

fill in the blanks (notice the number of accounts titles, ALL BLANKS FOR ACCOUNT TITLES MUST BE FILLED)

Cheyenne Ltd. owned several manufacturing facilities. On September 15 of the current year, Cheyenne decided to sell one of its manufacturing buildings. The building had cost $7,920,000 when originally purchased 5 years ago, and had been depreciated using the straight-line method with no residual value. Cheyenne estimated that the building had a 30 year life when purchased.

Prepare the journal entry to record the sale of the building on Cheyenne's books, assuming 5 years of depreciation has already been recorded in the accounts the building was sold for $6,750,000 cash. (Credit account titles are automatically indented when the 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.)

Prepare the journal entry to record the sale of the building on Cheyenne's books, assuming 5 years of depreciation has already been recorded in the accounts the building was sold for $6,600,000 cash. (Credit account titles are automatically indented when the 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.)

Prepare the journal entry to record the sale of the building on Cheyenne's books, assuming 5 years of depreciation has already been recorded in the accounts the building was sold for $6,410,000 cash. (Credit account titles are automatically indented when the 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 Sept. 15

Explanation / Answer

cost of machine

7920000

life of machine

30

annual depreciation

7920000/30

264000

Accumulated depreciation for 5 years

264000*5

1320000

Book value of machine at the end of year 5

7920000-1320000

6600000

selling price of machine

6750000

gain on sale of machine

6750000-6600000

150000

1-

Journal entry

explanation

debit

credit

cash

6750000

accuumulated depreciation

1320000

gain on sale of machine

150000

machinary

7920000

cost of machine

7920000

life of machine

30

annual depreciation

7920000/30

264000

Accumulated depreciation for 5 years

264000*5

1320000

Book value of machine at the end of year 5

7920000-1320000

6600000

selling price of machine

6600000

gain on sale of machine

6600000-6600000

0

2-

Journal entry

explanation

debit

credit

cash

6600000

accuumulated depreciation

1320000

machinary

7920000

3-

cost of machine

7920000

life of machine

30

annual depreciation

7920000/30

264000

Accumulated depreciation for 5 years

264000*5

1320000

Book value of machine at the end of year 5

7920000-1320000

6600000

selling price of machine

6410000

gain on sale of machine

6410000-6600000

-190000

Journal entry

explanation

debit

credit

cash

6410000

accuumulated depreciation

1320000

loss on sale of machinary

190000

machinary

7920000

cost of machine

7920000

life of machine

30

annual depreciation

7920000/30

264000

Accumulated depreciation for 5 years

264000*5

1320000

Book value of machine at the end of year 5

7920000-1320000

6600000

selling price of machine

6750000

gain on sale of machine

6750000-6600000

150000

1-

Journal entry

explanation

debit

credit

cash

6750000

accuumulated depreciation

1320000

gain on sale of machine

150000

machinary

7920000

cost of machine

7920000

life of machine

30

annual depreciation

7920000/30

264000

Accumulated depreciation for 5 years

264000*5

1320000

Book value of machine at the end of year 5

7920000-1320000

6600000

selling price of machine

6600000

gain on sale of machine

6600000-6600000

0

2-

Journal entry

explanation

debit

credit

cash

6600000

accuumulated depreciation

1320000

machinary

7920000

3-

cost of machine

7920000

life of machine

30

annual depreciation

7920000/30

264000

Accumulated depreciation for 5 years

264000*5

1320000

Book value of machine at the end of year 5

7920000-1320000

6600000

selling price of machine

6410000

gain on sale of machine

6410000-6600000

-190000

Journal entry

explanation

debit

credit

cash

6410000

accuumulated depreciation

1320000

loss on sale of machinary

190000

machinary

7920000