Exercise 9-09 (Video) Presented below are selected transactions at Monty Corp. for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $61,900 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, 2017. The computer cost $31,200. It had a useful life of 5 years with no salvage value. The computer was sold for $14,600. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $37,980. 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. Monty Corp. 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round
Exercise 9-09 (Video) Presented below are selected transactions at Monty Corp. for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $61,900 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, 2017. The computer cost $31,200. It had a useful life of 5 years with no salvage value. The computer was sold for $14,600. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $37,980. 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. Monty Corp. 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Exercise 9-09 (Video)
Presented below are selected transactions at Monty Corp. for 2020.
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Monty Corp. 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. Recordjournal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round
| Jan. | 1 | Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $61,900 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, 2017. The computer cost $31,200. It had a useful life of 5 years with no salvage value. The computer was sold for $14,600. | |
| Dec. | 31 | Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $37,980. It was |
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Monty Corp. 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
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