Journal Entries for Depreciation (Alternates are 8-32 and 8-33.) On January 1, 2

Question

Journal Entries for Depreciation (Alternates are 8-32 and 8-33.) On January 1, 20X1, the Dallas Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robots had an expected useful life of 10 years and an expected residual value of $54,000 in total. Dallas uses straight-line depreciation. 1.Set up T-accounts and prepare the journal entries for the acquisition and for the first annual depreciation charge. Post to T-accounts. 2. On December 31, 20X3, Dallas sold one of the robots for $40,000 in cash. The robot had an original cost of $66,000 and an expected residual value of $6,000. Prepare the journal entry for the sale. 3. Refer to requirement 2. Suppose Dallas had sold the robot for $62,000 cash instead of $40.000. Prepare the journal entry for the sale.

Explanation / Answer

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The total value of 9 robats as on january 01, 2001 $ 594,000.00 Total useful life(years) 10 Depriciation of 9 robats for each year on straight line method is $    59,400.00

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