The previous tutor posted a link. Please post the actual answers in chart form!!

Question

The previous tutor posted a link. Please post the actual answers in chart form!!! Record sale of Vehicle 1 on Dec. 31, 2014 for $4,500, show journal entry, T-accounts. Record sale of Machine 1 on Dec. 31, 2014 for $40,000, show journal entry, T-accounts. Prepare new trial balance, and multi-step income statement. * The preferred format for the multistep income statement is to record the net gain or loss from disposals' in the "other revenue and expense account" section of the income statement. The textbook demonstrates an alternative display of the account; please do not use that example. Use the example included in this manual for the proper format.

Explanation / Answer

1. vehicle sale:

Debit Cash $4500

Debit Depreciation - vehicle $4000

Debit Loss on sale of vehicle $1500

Credit Vehicle $10000

2. Machine sale:

Debit Cash $40000

Debit Depreciation - Machine $18000

Credit Machine $50000

Credit Gain on sale of Machine $8000

3.

Adjusted Trial Balance:

Income Statement:

Accounts Debit $ Credit $ Cash 226470 Accounts receivables 89650 Allowance for Doubtful Accounts 1500 Supplies 6425 Prepaid insurance 15000 Accounts Payable 29620 Unearned Revenue 6015 Note Payable 10000 Contributed Capital 75000 Retained Earnings 25000 Gain on sale of Machine 8000 Loss on sale of Vehicle 1500 Sales Revenue 275000 Interest Revenue 3500 Depreciation 10000 Supplies Expense 465 Insurance Expense 2500 Income Tax Expense 1500 Other Operating Expenses 77850 Interest Expense 2275 Total 433635 433635

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