Problem 9-3A Blossom Company had the following assets on January 1, 2017. Useful

Question

Problem 9-3A Blossom Company had the following assets on January 1, 2017. Useful Life (in years) 10 Purchase Date Salvage Value s 0 0 3,600 Cost Item Machinery $85,200 Jan. 1, 2007 Forklift Truck 36,000 Jan. 1, 2014 40,080 Jan. 1, 2012 During 2017, each of the assets was removed from service. The machinery was retired on Ja December 31. Journalize all entries required on the above dates, including entries to update depreciation, w All depreciation was up to date as of December 31, 2016. (Credit account titles are auton no entry is required, select "No Entry" for the account titles and enter o for the amo Debit Credit Date Account Titles and Explanation

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1. Machinery Retired Since life of 10 years has completed, machinery is being retired and on retirement, Accumulated Depreication will be transferred to asset account. Date Account Debit Credit January 1 2017 Accumulated Depreciation 85200 Machinery 85200 (Machienry being retired) 2. Sale for forklift Date Account Debit Credit June 30, 2017 Depreciation Expense 7200 (36000/5)*1/2 for six month Accumulated Depreciation 7200 (Current dep recorded) June 30, 2017 Cash 14400 Sale Price Accumulated Depreciation 25200 (36000/5)*3.5 for 3 and half year Gain on sale of forklift 3600 (36000-25200)-14400 Forklift 36000 Cost (to record sale) 3. Truck Discarded Date Account Debit Credit June 30, 2017 Depreciation Expense 4560 (40080-3600)/8 Accumulated Depreciation 4560 (Current dep recorded) June 30, 2017 Loss on Truck disposal 12720 40080-27360 Accumulated Depreciation 27360 4560*6 Truck 40080 Cost (to record sale)

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