Exercise 9-8 Here are selected 2017 transactions of Concord Corporation Jan. 1 J

Question

Exercise 9-8 Here are selected 2017 transactions of Concord Corporation Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,300 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2015. The computer cost $35,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,400 cash Sold a delivery truck for $9,450 cash. The truck cost $24,700 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $4,100 salvage value ournalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Concord Corporation uses straight-line depreciation. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 1 Accumlated depreciation-machinery 61300     Machinery 61300 (To record machinery retired) June 30 Depreciation expense-computer (35000/4)*6/12 4375      Accumlated depreciation-computer 4375 (To record depreciation) June 30 Cash 4400 Accumlated depreciation-computer (35000/4*2.5) 21875 Loss on sale of computer 8725       Computer 35000 (To record sale of computer) Dec 31 Depreciation expense (24700-4100/5) 4120      Accumlated depreciation-delivery truck 4120 (To record depreciation) Dec 31 Cash 9450 Accumlated depreciation-delivery truck (24700-4100/5*4) 16480       Gain on sale of truck 1230      Delivery truck 24700 (TO record sale of delivery truck)

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