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Cash 13800 Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment 43700 (To record the sale of equipment)

Cash 13800 Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment 43700 (To record the sale of equipment)

FINANCIAL ACCOUNTING
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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Presented below are selected transactions at Blue Company for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost £64,400 on that date. It had a useful life of 10 years with no residual value. June 30 Sold a computer that was purchased on January 1, 2017. The computer cost £43,700. It had a useful life of 5 years with no residual value. The computer was sold for £13,800. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost £40,380. It was depreciated based on a6-year useful life with a £3,000 residual value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Blue Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1 Accumulated Depreciation-Equipment 64400 Equipment 64400 June 30 Depreciation Expense 4370 Accumulated Depreciation-Equipment 4370 (To record depreciation) lune 30 Cash 13800 Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment 43700 (To record the sale of equipment) Dec. 31 Depreciation Expense 6230 Accumulated Depreciation-Equipment 6230 (To record depreciation) Dec. 31 Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment 40380 (To record the discarding of equipment)
Transcribed Image Text:Presented below are selected transactions at Blue Company for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost £64,400 on that date. It had a useful life of 10 years with no residual value. June 30 Sold a computer that was purchased on January 1, 2017. The computer cost £43,700. It had a useful life of 5 years with no residual value. The computer was sold for £13,800. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost £40,380. It was depreciated based on a6-year useful life with a £3,000 residual value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Blue Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1 Accumulated Depreciation-Equipment 64400 Equipment 64400 June 30 Depreciation Expense 4370 Accumulated Depreciation-Equipment 4370 (To record depreciation) lune 30 Cash 13800 Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment 43700 (To record the sale of equipment) Dec. 31 Depreciation Expense 6230 Accumulated Depreciation-Equipment 6230 (To record depreciation) Dec. 31 Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment 40380 (To record the discarding of equipment)
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