Question Details

ACC 557 Week 6 Chapter 9 E9 9 E9 11 E9 12 P9 3A

Question Details:
ACC 557 Week 6 Chapter 9 E9 9 E9 11 E9 12 P9 3A

EXERCISE 9-9

 

Jan.    1     Accumulated Depreciation—Equipment.......... 58,000

                            Equipment..................................................................      58,000

 

June 30     Depreciation Expense..........................................  4,000

                            Accumulated Depreciation—Equipment

                              ($40,000 X 1/5 X 6/12)...........................................       4,000

 

          30     Cash......................................................................... 14,000

                    Accumulated Depreciation—Equipment

                      ($40,000 X 3/5 = $24,000; $24,000 + $4,000)..... 28,000

                            Gain on Disposal of Plant Assets

                              [$14,000 – ($40,000 – $28,000)]..........................         2,000

                            Equipment..................................................................      40,000

 

Dec.  31     Depreciation Expense..........................................  5,000

                            Accumulated Depreciation—Equipment

                              [($33,000 – $3,000) X 1/6].....................................         5,000

 

          31     Loss on Disposal of Plant Assets......................  8,000

                    Accumulated Depreciation—Equipment

                      [($33,000 – $3,000) X 5/6]................................. 25,000

                            Equipment..................................................................      33,000

Top of Form

 

Exercise 9-9

 

Your answer is correct.

 

 

Presented below are selected transactions at Tomas Company for 2014.

Jan. 1

 

Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $58,000 on that date. It had a useful life of 10 years with no salvage value.

June 30

 

Sold a computer that was purchased on January 1, 2011. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.

Dec. 31

 

Discarded a delivery truck that was purchased on January 1, 2010. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.


Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Tomas Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2013.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

 

June. 30

 

 

(To record current depreciation)

 

 

June. 30

 

 

 

 

(To record the sale of the Asset)

 

 

Dec. 31

 

 

(To record current depreciation)

 

 

Dec. 31

 

 

 

(To record the disposal of the truck)

 

 

Click here if you would like to Show Work for this question

 

 

 

 

 

 

 

 

 

 

 

 

Question Attempts: 1 of 3 used

 

 

 

Bottom of Form

Attachments


Solution Details:
ACC 557 Week 6 Chapter 9 (E9-9 E9-11 E9-12 P9-3A)

EXERCISE 9-9 Jan. 1 Accumulated Depreciation—Equipment 58,000 Equipment 58,000 June 30 Depreciation Expense  4,000 Accumulated Depreciation—Equipment   ($40,000 X 1/5 X 6/12)  4,000 30 Cash 14,000 Accumulated Depreciation—Equipment   ($40,000 X 3/5 = $24,000; $24,000 + $4,000) 28,000 Gain on Disposal of Plant Assets   [$14,000 – ($40,000 – $28,000)] 2,000 Equipment 40,000 Dec. 31 Depreciation Expense  5,000 Accumulated Depreciation—Equipment   [($33,000 –...
Buy to view full solution.


  • Posted by: Rapidtutor
  • Purchased: 7 times
  • Submitted: 08/31/2018 12:49pm

Ratings

There is no rating for this solution.
Facebook Comments