pandabear88
Nov 5, 2007, 05:38 PM
Hi,
Sorry for this format, it's kind of hard to read, but I'm supposed to journalize these transactions and I can't get June 30th and Dec. 31st to work out correctly. I would greatly appreciate any help. Thanks!
Jan. 1 Retired a piece of machinery that was purchased on January 1, 1997. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2004. The computer cost $32,000 and had a useful life of 5 years with no salvage value. The computer was sold for $10,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2002. The truck cost $27,000 and was depreciated based on an 8-year useful life with a $3,000 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Riley Corporation uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2006.) (For multiple debit/credit entries, list in order of magnitude.)
Date Account / Description Debit Credit
Jan. 1
Accumulated depreciation - machinery $ 71000
Machinery $ 71000
June 30 Depreciation expense $ ?????
Accumulated depreciation - computer $ ?????
(To record depreciation on computer.)
Accumulated depreciation - computer $
Cash $ 10000
Computer $ 32000
Gain on disposal $ ?????
(To record the sale of the computer.)
Dec. 31 Depreciation expense $ 3000
Accumulated depreciation - truck $ 3000
(To record depreciation on truck.)
ComputerCashAccumulated depreciation – machinery
Accumulated depreciation – ?????computerMachineryTruckDepreciation expenseAdvertising expenseResearch and development expenseGain on disposalLoss on disposalAccumulated depreciation – truck $
Depreciation expenseGain on disposalAccumulated depreciation – machineryAccumulated depreciation – computerTruckAdvertising expenseLoss on disposalCashMachineryAccumulated depreciation – truckResearch and development expenseComputer $
Truck $ 27000
(To record disposal of truck.)
The long list right above are the options for debit and credit. For Dec. 31st, I was thinking loss on disposal and cash for 24000 and 3000 respectively, but it's incorrect.
Thank you!!
Sorry for this format, it's kind of hard to read, but I'm supposed to journalize these transactions and I can't get June 30th and Dec. 31st to work out correctly. I would greatly appreciate any help. Thanks!
Jan. 1 Retired a piece of machinery that was purchased on January 1, 1997. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2004. The computer cost $32,000 and had a useful life of 5 years with no salvage value. The computer was sold for $10,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2002. The truck cost $27,000 and was depreciated based on an 8-year useful life with a $3,000 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Riley Corporation uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2006.) (For multiple debit/credit entries, list in order of magnitude.)
Date Account / Description Debit Credit
Jan. 1
Accumulated depreciation - machinery $ 71000
Machinery $ 71000
June 30 Depreciation expense $ ?????
Accumulated depreciation - computer $ ?????
(To record depreciation on computer.)
Accumulated depreciation - computer $
Cash $ 10000
Computer $ 32000
Gain on disposal $ ?????
(To record the sale of the computer.)
Dec. 31 Depreciation expense $ 3000
Accumulated depreciation - truck $ 3000
(To record depreciation on truck.)
ComputerCashAccumulated depreciation – machinery
Accumulated depreciation – ?????computerMachineryTruckDepreciation expenseAdvertising expenseResearch and development expenseGain on disposalLoss on disposalAccumulated depreciation – truck $
Depreciation expenseGain on disposalAccumulated depreciation – machineryAccumulated depreciation – computerTruckAdvertising expenseLoss on disposalCashMachineryAccumulated depreciation – truckResearch and development expenseComputer $
Truck $ 27000
(To record disposal of truck.)
The long list right above are the options for debit and credit. For Dec. 31st, I was thinking loss on disposal and cash for 24000 and 3000 respectively, but it's incorrect.
Thank you!!