Exercise 7-8 Here are selected 2017 transactions of Indigo Corporation. Jan. 1 R

Question

Exercise 7-8 Here are selected 2017 transactions of Indigo Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,800 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2015. The computer cost $37,000 and had a useful life of 4 years with no salae value. The computer was sold for $4,000 cash. Dec. 31 Sold a delivery truck for $9,380 cash. The truck cost $23,600 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,200 salvage value. Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where applicable. Indigo Corporation uses straight-line depreciation. (If a transaction cause Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities + Stockholders' Equity Retained Earnings + Common Stock RevenueExpenseDividend Jan.1s 515 51 June 30 Depreciation expense Gain on dispocal Dec. 31 Depreciation expense LINK TO TEXT Question Attemp

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Asset =Liabilities+ Stockholders'Equity Retained Earning Cash+ Equipment- Accumulated Depreciation-Equipment= +Common Stock+ Revenue- Expense- Dividend Jan 1 -61800 -6180 June 30 4625 4625 Dep Expense 4000 -37000 -23125 9875 Loss on Disposal December 31 4080 4080 Dep Expense 9380 -23600 -16320 2100 Gain on Disposal Jan 1 Working Journal: Accumulated Depreciation 61800 Equipment 61800 June-30 Working Cost 37000 Depreciation-2015 9250 Depreciation-2016 9250 Depreciation-2017 4625 (6 Months) Value as on 30th June 2017 13875 Sale Value 4000 Loss on sale 9875 Journal Cash 4000 Accumulated Depreciation 23125 Loss on sale 9875 Computer 37000 December 31 Working Cost 23600 Less:Salvage Value 3200 Net Depreciable Value 20400 Dep 2014 4080 Dep 2015 4080 Dep 2016 4080 Dep 2017 4080 Total Dep 16320 Value as on 31 December 4080 (20400-16320) Sale Price 9380 Gain on Disposal 2100 (23600-16320-9380) Journal Cash 9380 Accumulated Depreciation 16320 Gain on sale 2100 Computer 23600

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