(a) (b) Oriole Company retires its delivery equipment, which cost $53,990. Accumulated depreciation is also $53,990 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,080 instead of 53,990. No. Account Titles and Explanation (a) Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Depreciation Expense Accumulated Depreciation-Equipment Equipment Debit 53990 16910 37080 Credit 53990 53990

(a) (b) Oriole Company retires its delivery equipment, which cost $53,990. Accumulated depreciation is also $53,990 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,080 instead of 53,990. No. Account Titles and Explanation (a) Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Depreciation Expense Accumulated Depreciation-Equipment Equipment Debit 53990 16910 37080 Credit 53990 53990

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

I need help with this journal entry, I have it partially correct but I'm not sure how to record the new accumulated depreciation and what numbers to use.

(a)
(b)
Oriole Company retires its delivery equipment, which cost $53,990. Accumulated depreciation is also $53,990 on this
delivery equipment. No salvage value is received.
(b)
Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,080 instead of
53,990.
No. Account Titles and Explanation
(a)
Accumulated Depreciation-Equipment
Loss on Disposal of Plant Assets
Depreciation Expense
Accumulated Depreciation-Equipment
Equipment
Debit
53990
16910
37080
Credit
53990
53990

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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