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kizzyb
Feb 25, 2006, 05:35 PM
On Oct 5 Install new wiring throughout the building at a cost of 30,000. It is expected that the life of the building will be extended as a result.

Oct 6 Sold an old truck with the cost of 11,000 and accumulated depreciation prior to the current year of 9,600 for 1,000. Depreciation has been recorded at the rate of 1,800 a year but has not yet been recorded for 20xx.

Oct 10 traded in old office equipment for new office equipment listing at 3200.
The cost of the old equipment was 3,000, and accumulated depreciation through the data of trade was 200. Received a 2,900 trade-in allowance and paid the balance in cash. The accounting method is used.

Oct 17 Purchased for cash a fax machine for the office. The list price was 790 but 15% trade discount eas received.

Oct 31 Recorded depreciationon the truck purcahsed on August 14. The units-of-production method is used. The truck has a useful life od 50,000 miles and a salvage value of 2000. It was driven 1.100 miles in August.

CaptainForest
Feb 25, 2006, 06:34 PM
How would you journalize these?

Post back.

kizzyb
Feb 25, 2006, 11:26 PM
Dr. Building 30,000
Cr. Cash 30,000

Autombile Old DR 11000
Acc. Dr. 9,600
Autombile cr. 2800
Depreciation Cr. 1800
Man I'm having trouble, This is driving me crazy. I can't understand. I have read and I still can't get.

CaptainForest
Feb 26, 2006, 01:07 PM
Dr. Building 30,000
cr. cash 30,000

CORRECT



Autombile Old DR 11000
Acc. Dr. 9,600
Autombile cr. 2800
Depreciation Cr. 1800
Man i,m having trouble, This is driving me crazy. I can't understand. I have read and i still can't get.


You must record depreciation for this year.
Dr. Dep. Expense 900
Cr. Acc. Dep 900

Now, you sold it for $1,000, so you need to whipe it off your books
Dr. Cash 100
Dr. Acc. Dep 9,600+900=10,500
Cr. Old Truck 11,000
Cr. Gain on sale of truck 500 (100+10,500=11,500-11,000)

You can also combine the 2 journal entries….
Dr. Dep. Expense 900
Dr. Cash 100
Dr. Acc. Dep 9,600
Cr. Old Truck 11,000
Cr. Gain on sale of truck 500 (100+10,500=11,500-11,000)


Remember:
When you INCREASE as asset, you debit it. When you DECREASE it, you credit it.