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Ivanhoe Company had the following assets on January 1, 2025. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $61,000 Jan. 1, 2015 10 $0 Forklift 20,000 Jan. 1, 2022 5 Truck 26,400 Jan. 1, 2020 8 3,000 During 2025, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,000. The truck was discarded on December 31. 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, 2024. (List all debit entries before credit entries. 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.) Date Jan. 1 June 30 Account Titles and Explanation Accumulated Depreciation-Equipment Equipment (To record disposal of machinery) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on forklift) June 30 Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets (To record sale of forklift) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on truck) Dec. 31 Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment (To record disposal of truck) Debit Credit 61,000 2,000 11,000 14,000 2,925 61,000 2,000 20,000 5,000 2,925 26,400

Ivanhoe Company had the following assets on January 1, 2025. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $61,000 Jan. 1, 2015 10 $0 Forklift 20,000 Jan. 1, 2022 5 Truck 26,400 Jan. 1, 2020 8 3,000 During 2025, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,000. The truck was discarded on December 31. 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, 2024. (List all debit entries before credit entries. 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.) Date Jan. 1 June 30 Account Titles and Explanation Accumulated Depreciation-Equipment Equipment (To record disposal of machinery) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on forklift) June 30 Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets (To record sale of forklift) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on truck) Dec. 31 Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment (To record disposal of truck) Debit Credit 61,000 2,000 11,000 14,000 2,925 61,000 2,000 20,000 5,000 2,925 26,400

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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Please solve the items for December 31st entry at the bottom for Loss on Disposal of Plant Assets and Accumulated Deprection Equipment. This is circled in Red and highleted in Yellow. at the bottom of the image.

Ivanhoe Company had the following assets on January 1, 2025. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $61,000 Jan. 1, 2015 10 $0 Forklift 20,000 Jan. 1, 2022 5 Truck 26,400 Jan. 1, 2020 8 3,000 During 2025, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,000. The truck was discarded on December 31. 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, 2024. (List all debit entries before credit entries. 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.) Date Jan. 1 June 30 Account Titles and Explanation Accumulated Depreciation-Equipment Equipment (To record disposal of machinery) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on forklift) June 30 Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets (To record sale of forklift) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on truck) Dec. 31 Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment (To record disposal of truck) Debit Credit 61,000 2,000 11,000 14,000 2,925 61,000 2,000 20,000 5,000 2,925 26,400
Transcribed Image Text:Ivanhoe Company had the following assets on January 1, 2025. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $61,000 Jan. 1, 2015 10 $0 Forklift 20,000 Jan. 1, 2022 5 Truck 26,400 Jan. 1, 2020 8 3,000 During 2025, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,000. The truck was discarded on December 31. 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, 2024. (List all debit entries before credit entries. 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.) Date Jan. 1 June 30 Account Titles and Explanation Accumulated Depreciation-Equipment Equipment (To record disposal of machinery) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on forklift) June 30 Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets (To record sale of forklift) Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on truck) Dec. 31 Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment (To record disposal of truck) Debit Credit 61,000 2,000 11,000 14,000 2,925 61,000 2,000 20,000 5,000 2,925 26,400
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