$1,794,000 496,800 $1,297,200 Date Account Titles and Explanation Debit Credit (
ID: 2571112 • Letter: #
Question
$1,794,000
496,800
$1,297,200
Date
Account Titles and Explanation
Debit
Credit
(To record current depreciation.)
(To record loss of the machine.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
(To record current depreciation.)
(To record sale of the machine.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
(To record current depreciation.)
(To record donation of the machine.)
On December 31, 2017, Sarasota Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows.Machine
$1,794,000
Less: Accumulated depreciation496,800
Book value$1,297,200
Depreciation is computed at $82,800 per year on a straight-line basis.
Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
Explanation / Answer
Date Account Titles and Explanation Debit Credit August 31, 2018 Depreciation expense (82800*8/12) 55200 Accumulated depreciation 55200 (To record current depreciation.) August 31, 2018 Cash 593400 Accumulated depreciation (496800+55200) 552000 Loss on destruction of machine 648600 Machine 1794000 (To record loss of the machine.) Date Account Titles and Explanation Debit Credit April 1, 2018 Depreciation expense (82800*3/12) 20700 Accumulated depreciation 20700 (To record current depreciation.) April 1, 2018 Cash 1435200 Accumulated depreciation (496800+20700) 517500 Gain on sale of machine 158700 Machine 1794000 (To record sale of the machine.) Date Account Titles and Explanation Debit Credit July 31, 2018 Depreciation expense (82800*7/12) 48300 Accumulated depreciation 48300 (To record current depreciation.) July 31, 2018 Contribution expense 1518000 Accumulated depreciation (496800+48300) 545100 Gain on sale of machine 269100 Machine 1794000 (To record donation of the machine.)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.