hello,I need help with straight line depreciation calculations for 2 out of 3 questions on the attached screen shots. I can't seem to figure out the amounts for the following two journal entries for 2020:JUNE 30 - Computer soldI'm not sure if my entries are correct, CAN I HAVE A DETAILED EXPLANATION TO CHECK MY WORK? The one below, delivery truck, has stumped me. I can't figure it out. A detailed explanation would be so appreciated! DECEMBER 31 - Delivery Truck discarded: Accumulated deprecation (Debit) ?Loss on Disposal of Plant Assets (Debit) ?Equipment (Credit) $33,000TRANSACTIONS/problem:"Transactions for Ridge Company for 2020:Jun. 30 - Sold a computer that was purchased on January 1, 2017. The computer cost $45,000. 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, 2016. The truck cost $33,000. It was depreciated based on a 6 year useful life with a $3,000 salvage value.The company uses straight line depreciation (assume depreciation is up to date as of December, 31, 2019). " **Ridge Company Asset Transactions for 2020**Presented below are selected transactions for Ridge Company for 2020.**January 1:** - Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $62,000 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, 2017. The computer cost $45,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.**December 31:** - Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.**Instructions:** Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ridge 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.*| Date | Account Titles and Explanation | Debit | Credit ||------------|----------------------------------------------------|----------|----------|| Jan. 1 | Accumulated Depreciation-Equipment | 62,000 | || | Equipment | | 62,000 || | *To record retirement of equipment.* | | || June 30 | Depreciation Expense | 4,500 | || | Accumulated Depreciation-Equipment | | 4,500 || | *To record depreciation to date of disposal.* | | || June 30 | Cash | 14,000 | || | Accumulated Depreciation-Equipment | 31,500 | || | Gain on Disposal of Plant Assets | | 500 || | Equipment | | 45,000 || | ### Journal Entries for Asset Disposal and Depreciation#### Disposal of Equipment**Date: August 30**- **Debit: Accumulated Depreciation-Equipment** Amount: $4,500 *(To record depreciation to date of disposal)*- **Debit: Cash** Amount: $14,000- **Debit: Accumulated Depreciation-Equipment** Amount: $31,500- **Credit: Gain on Disposal of Plant Assets** Amount: $500 - **Credit: Equipment** Amount: $45,000 *(To record sale of computer)*#### Depreciation Expense**Date: December 31**- **Debit: Depreciation Expense** Amount: $5,000- **Credit: Accumulated Depreciation-Equipment** Amount: $5,000 *(To record depreciation to date of disposal)*#### Retirement of Truck**Date: December 31**- **Debit: Accumulated Depreciation-Equipment** Amount: $20,000- **Debit: Loss on Disposal of Plant Assets** Amount: $13,000- **Credit: Equipment** Amount: $33,000 *(To record retirement of truck)*---### Additional InformationThe detailed entries above illustrate accounting practices related to the disposal and retirement of fixed assets and the recording of depreciation expenses. Each entry follows the double-entry system, which ensures accounting balance by debiting and crediting accounts equivalently to maintain the ledger balance.### Interface OverviewBelow the entries, there are options for interacting with the educational interface including a "Save for Later" button and an "Attempts: 2 of 7 used" indicator to track progress. Users can submit their answers with the "Submit Answer" button.--- This transcription captures the essentials for educational purposes, offering insights into the accounting process regarding asset management.

Step 1 Depreciation is the written down in the value of the assets with respect to time and usage.

Answered: hello, I need help with straight line…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

hello,

I need help with straight line depreciation calculations for 2 out of 3 questions on the attached screen shots. I can't seem to figure out the amounts for the following two journal entries for 2020:

JUNE 30 - Computer sold

I'm not sure if my entries are correct, CAN I HAVE A DETAILED EXPLANATION TO CHECK MY WORK?

The one below, delivery truck, has stumped me. I can't figure it out. A detailed explanation would be so appreciated!

DECEMBER 31 - Delivery Truck discarded: Accumulated deprecation (Debit) ?

Loss on Disposal of Plant Assets (Debit) ?

Equipment (Credit) $33,000

TRANSACTIONS/problem:

"Transactions for Ridge Company for 2020:

Jun. 30 - Sold a computer that was purchased on January 1, 2017. The computer cost $45,000. 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, 2016. The truck cost $33,000. It was depreciated based on a 6 year useful life with a $3,000 salvage value.

The company uses straight line depreciation (assume depreciation is up to date as of December, 31, 2019). "

**Ridge Company Asset Transactions for 2020**

Presented below are selected transactions for Ridge Company for 2020.

**January 1:**
- Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $62,000 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, 2017. The computer cost $45,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.

**December 31:**
- Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

**Instructions:**
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ridge 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.*

| Date | Account Titles and Explanation | Debit | Credit |
|------------|----------------------------------------------------|----------|----------|
| Jan. 1 | Accumulated Depreciation-Equipment | 62,000 | |
| | Equipment | | 62,000 |
| | *To record retirement of equipment.* | | |
| June 30 | Depreciation Expense | 4,500 | |
| | Accumulated Depreciation-Equipment | | 4,500 |
| | *To record depreciation to date of disposal.* | | |
| June 30 | Cash | 14,000 | |
| | Accumulated Depreciation-Equipment | 31,500 | |
| | Gain on Disposal of Plant Assets | | 500 |
| | Equipment | | 45,000 |
| |

### Journal Entries for Asset Disposal and Depreciation

#### Disposal of Equipment

**Date: August 30**

- **Debit: Accumulated Depreciation-Equipment**
Amount: $4,500
*(To record depreciation to date of disposal)*

- **Debit: Cash**
Amount: $14,000

- **Debit: Accumulated Depreciation-Equipment**
Amount: $31,500

- **Credit: Gain on Disposal of Plant Assets**
Amount: $500

- **Credit: Equipment**
Amount: $45,000
*(To record sale of computer)*

#### Depreciation Expense

**Date: December 31**

- **Debit: Depreciation Expense**
Amount: $5,000

- **Credit: Accumulated Depreciation-Equipment**
Amount: $5,000
*(To record depreciation to date of disposal)*

#### Retirement of Truck

**Date: December 31**

- **Debit: Accumulated Depreciation-Equipment**
Amount: $20,000

- **Debit: Loss on Disposal of Plant Assets**
Amount: $13,000

- **Credit: Equipment**
Amount: $33,000
*(To record retirement of truck)*

---

### Additional Information

The detailed entries above illustrate accounting practices related to the disposal and retirement of fixed assets and the recording of depreciation expenses. Each entry follows the double-entry system, which ensures accounting balance by debiting and crediting accounts equivalently to maintain the ledger balance.

### Interface Overview

Below the entries, there are options for interacting with the educational interface including a "Save for Later" button and an "Attempts: 2 of 7 used" indicator to track progress. Users can submit their answers with the "Submit Answer" button.

---

This transcription captures the essentials for educational purposes, offering insights into the accounting process regarding asset management.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.