Idk if the work ive done is even right do far Chrome File Edit View History Book

Question

Idk if the work ive done is even right do far Chrome File Edit View History Bookmarks PeopleWindow Help Michael ? a secure https://edugen.wileyplus.com/edugen/student/maintr.uni WileyPLUS: MyWileyPLUS I ON: FINANCIAL ACCOUNTING (201 LUS Kimmel, Financial Accounting, 8e Assignment Gradebook ORION Downloadable eTextbook y & Practice Assignment CALCIATOR FULL SCREEN PR?NTER VERS?ON CES Problem 9-3A Cullumber Company had the following assets on January 1, 2017. Useful Life Item Cost Purchase Date (in years) Salvage Value Machinery $72,420 Jan. 1, 2007 Forklift 10 30,600 34,072 Jan. 1, 2014 Jan. 1, 2012 3,064 Truck During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,240. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016. (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 tities and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 72,420 Jan. 1 Equipment Cash 72,420 Jan. 1 Depreclation Expense 7,242 7,242 Accumulated Depreciation-Equipment (To record depreciation expense on forklift) June 30 Depreclation Expense 3,064 acy Policy I 2000-2018 John Wiley &Sons; Inc, All Rights Reserved. A Division of John Wiley & Sons Inc

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit Jan, 01 2017 Accumulated Depreciation $                  72,420        To Machienary $                     72,420 (To Record the retired of Machienary) June, 30, 2017 Cash $                  12,240 Accumulated Depreciatiom $                  21,420         To Gain on sale of Folkler $                       3,060          To Fokler $                     30,600 Dec, 31 2017 Accumulated Depreciation $                  25,554 Depreciation $                     8,518       To Truck $                     34,072 Working Note : 1 Purchase value of the Forklift = $                  30,600 Divide by the life of the assets = "/'" By 5 Years   Depreciation per year $                     6,120 Depreciation for the 3.5 years =(6,120 X 3.5) $                  21,420 Book value = Purhcase price - Accumulated depreciation Book value = 30600 - 21,420 $                     9,180 Gain on Sales of assets = 12,240-$ 91,80 = $                     3,060 Working Note : 2 Purchase value of the Truck = $                  34,072 Less: Salvage Value $                     3,064 Net Value for the depreciation $                  31,008 Divide by the life of the assets = "/'" By 8 Years   Depreciation per year $                     4,259 Depreciation for the 6 years =(4,259 X 6 Years) $                  25,554 Book value = Purhcase price - Accumulated depreciation Book value = 34,072 - 25,554 = $                     8,518

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