**Crane Company's Asset Information and Journal Entries****Assets Overview as of January 1, 2022**Crane Company had the following assets:| Item | Cost | Purchase Date | Useful Life (in years) | Salvage Value ||------------|--------|---------------|------------------------|---------------|| Machinery | $82,000| Jan. 1, 2012 | 10 | $0 || Forklift | $41,000| Jan. 1, 2019 | 5 | 0 || Truck | $47,400| Jan. 1, 2017 | 8 | 3,000 |**Asset Disposition in 2022**- The machinery was retired on January 1. - The forklift was sold on June 30 for $13,100.- The truck was discarded on December 31.**Depreciation Information**- All depreciation was current as of December 31, 2021.- The company uses straight-line depreciation.**Journal Entries Instructions**1. Update depreciation for disposed assets where applicable.2. Record the retirement of machinery.3. Note the sale of the forklift.4. Document the disposal of the truck.*Credit account titles are automatically indented when the amount is entered. Do not manually indent. If no entry is needed, select “No Entry” for account titles and enter 0 for the amounts.***Journal Entry Template**| Date | Account Titles and Explanation | Debit | Credit ||------------|--------------------------------|-------|--------|| | | | || | | | || | | | |This structured presentation aims to assist in understanding and recording necessary accounting entries for the disposal of company assets.

Name: **Crane Company's Asset Information and Journal Entries****Assets Ove
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Description: **Crane Company's Asset Information and Journal Entries****Assets Overview as of January 1, 2022**Crane Company had the following assets:| Item | Cost | Purchase Date | Useful Life (in years) | Salvage Value ||------------|--------|---------

A journal entry is a basic accounting record that is used to chronologically track financial…

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Crane Company had the following assets on January 1, 2022. Item Machinery Forklift Truck Cost Purchase Date $82,000 Jan. 1, 2012 41,000 Jan. 1, 2019 47,400 Jan. 1, 2017 Date Useful Life (in years) 10 5 8 Salvage Value $0 0 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $13,100. The truck was discarded on December 31. Account Titles and Explanation 3,000 Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit

Crane Company had the following assets on January 1, 2022. Item Machinery Forklift Truck Cost Purchase Date $82,000 Jan. 1, 2012 41,000 Jan. 1, 2019 47,400 Jan. 1, 2017 Date Useful Life (in years) 10 5 8 Salvage Value $0 0 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $13,100. The truck was discarded on December 31. Account Titles and Explanation 3,000 Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

**Crane Company's Asset Information and Journal Entries**

**Assets Overview as of January 1, 2022**

Crane Company had the following assets:

| Item | Cost | Purchase Date | Useful Life (in years) | Salvage Value |
|------------|--------|---------------|------------------------|---------------|
| Machinery | $82,000| Jan. 1, 2012 | 10 | $0 |
| Forklift | $41,000| Jan. 1, 2019 | 5 | 0 |
| Truck | $47,400| Jan. 1, 2017 | 8 | 3,000 |

**Asset Disposition in 2022**

- The machinery was retired on January 1.
- The forklift was sold on June 30 for $13,100.
- The truck was discarded on December 31.

**Depreciation Information**

- All depreciation was current as of December 31, 2021.
- The company uses straight-line depreciation.

**Journal Entries Instructions**

1. Update depreciation for disposed assets where applicable.
2. Record the retirement of machinery.
3. Note the sale of the forklift.
4. Document the disposal of the truck.

*Credit account titles are automatically indented when the amount is entered. Do not manually indent. If no entry is needed, select “No Entry” for account titles and enter 0 for the amounts.*

**Journal Entry Template**

| Date | Account Titles and Explanation | Debit | Credit |
|------------|--------------------------------|-------|--------|
| | | | |
| | | | |
| | | | |

This structured presentation aims to assist in understanding and recording necessary accounting entries for the disposal of company assets.

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