Brief Exercise 9-7 Prepare journal entries to record these transactions: (a) Ran
ID: 2466942 • Letter: B
Question
Brief Exercise 9-7
Prepare journal entries to record these transactions: (a) Rangel Company retires its delivery equipment, which cost $49,780. Accumulated depreciation is also $49,780 on this delivery equipment. No salvage value is received. (b) Rangel Company retires its delivery equipment, which cost $49,780. Accumulated depreciation for the equipment is $36,340 on this delivery equipment. No salvage value is received. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
Explanation / Answer
a)
Dr Accumulated Depreciation - Delivery Equipment $49,780
Cr Delivery Equipment $49,780
To record retirement of delivery equipment
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b)
Dr Accumulated Depreciation - Delivery Equipment $36,340
Dr Loss on Retirement of Delivery Equipment $13,440
Cr Delivery Equipment $49,780
To record retirement of delivery equipment and recognize the loss
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