Exercise 9-9 Presented below are selected transactions at Ridge Company for 2017
ID: 2556629 • Letter: E
Question
Exercise 9-9
Presented below are selected transactions at Ridge Company for 2017.
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ridge Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2016.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations.)
Date
Account Titles and Explanation
Debit
Credit
(To record depreciation to date of disposal)
June 30
(To record sale of computer)
(To record depreciation to date of disposal)
Dec. 31
(To record retirement of truck)
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,800 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2014. The computer cost $39,000. It had a useful life of 5 years with no salvage value. The computer was sold for $15,800. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2013. The truck cost $36,540. It was depreciated based on a 6-year useful life with a $3,000 salvage value.Explanation / Answer
RIDGE COMPANY Journal entries for the year 2017 Date Account Title Debit Credit Jan.1 Accumulated Depreciation - Machinery 61800 Machinery 61800 (Machinery retired after the estimated life of 10 years) June.30 Depreciation Expense 3900 Accumulated Depreciation - Copmuter 3900 (Depreciatio provided utpo the date of sale) Cash 18500 Accumulated Depreciation (7,800*3+3,900) 27300 Computer 39000 Gain on sale of equipment 6800 (Sale of computer) Dec.31 Depreciation - Delivery truck 5590 Accumulated Depreciation - Delivery truck 5590 (Depreciation on the delivery truck disposed) Dec.31 Accumulated Depreciation 27950 Loss on discarding of delivery truck 8590 Delivery truck 36540 (Disposal of delivery truck )
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