CALCUULAT L SCREEN PRINTER VERSIOR CES Exercise 9-8 Here are selected 2017 trans
ID: 2573540 • Letter: C
Question
CALCUULAT L SCREEN PRINTER VERSIOR CES Exercise 9-8 Here are selected 2017 transactions of Bramble Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,200 and had a useful life of 10 years with no salvage value. une Sold a computer that was purchased on January 1, 2015. The computer cost $35,400 and had a useful ife of 4 years with no salvage value. The computer was sold for 30 $5,500 cash. Dec. Sold a delivery truck for $9,450 cash. The truck cost $24,000 when it was purchased on January 1, 2014, and was depreciated based on a S-year useful life wilth a 31 $3,700 salvage value. Journalize all entries required on the above dates, incdluding entries to update depreciation on assets disposed of, where applicable. Bramble Corporation uses straight-ine depreciation. Record entries in the order displayed inthe problem statement Credit amit ito, a·edor at cally n d t d che a st b i red i red indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) tudy Date Account Titles and Explanation Debit Credit To record deprecation expense for 2017)Explanation / Answer
Answer:
January 1 : Retirement of Machinery
Purchase Date : 1st Jan 2007
Depreciation till date = (62200/10) * 10 = 62200
Book Value = Original Cost - Book Value= Nil
Since the value as on 1st jan 2017 is nil. No entry is needed.
June 30 : Sale of Computer
Value on 1st Jan 2017 : 35400-(35400/4)*2 = 17700
Depreciation till 30 June 2017 i.e for Half Year: (35400/4)/2=$4425
Entry
Bank Account Dr 5500
Depreciation A/c Dr 4425
Loss on Sale of Computer A/c Dr 7775
To Computer A/c 17700
(Being Computer Sold)
December 31 : Sale of Truck
Value on 1st Jan 2017 : 24000-((24000-3700)/5)*3 = 11820
Depreciation till December 31 2017 i.e for one Year: (24000-3700)/5)=$4060
Entry
Bank A/c Dr 9450
Depreciation A/c Dr 4060
To Truck A/c 11820
To Profit on sale of Truck A/c 1690
(Being truck Sold)
Bank Account Dr 5500
Depreciation A/c Dr 4425
Loss on Sale of Computer A/c Dr 7775
To Computer A/c 17700
(Being Computer Sold)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.