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Kingbird Corporation owns machinery that cost $28,400 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,408 per year, resulting in a balance in accumulated depreciation of $11.928 at December 31, 2025. The machinery is sold on September 1, 2026, for $14.910. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Kingbird Corporation owns machinery that cost $28,400 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,408 per year, resulting in a balance in accumulated depreciation of $11.928 at December 31, 2025. The machinery is sold on September 1, 2026, for $14.910. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

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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Kingbird Corporation owns machinery that cost $28,400 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,408 per year, resulting in a balance in accumulated depreciation of $11.928 at December 31, 2025. The machinery is sold on September 1, 2026, for $14,910. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) Debit Credit 00000
Transcribed Image Text:Kingbird Corporation owns machinery that cost $28,400 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,408 per year, resulting in a balance in accumulated depreciation of $11.928 at December 31, 2025. The machinery is sold on September 1, 2026, for $14,910. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (Credit account titles are automatically indented when 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. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) Debit Credit 00000
Oriole Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2025. Purchase Cash paid for equipment, including sales tax of $7,000 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment Construction Material and purchased parts (gross cost $280.000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs Allocated overhead costs (fixed-$28,000: variable-$42.000) Profit on self-construction Show Transcribed Text Ç Construction Purchase equipment $ $147,000 Construction equipment $ 2,800 4,340 5,600 2,100 11.200 1.820 $280,000 19,600 (a1) Compute the total cost for each of these two pieces of equipment. 266.000 Material and purchased parts (gross cost $280,000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs Allocated overhead costs (fixed-$28,000; variable-$42,000) Profit on self-construction Cost of installing equipment 70.000 42.000 $280,000 19,600 266,000 70,000 42,000 6,160
Transcribed Image Text:Oriole Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2025. Purchase Cash paid for equipment, including sales tax of $7,000 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment Construction Material and purchased parts (gross cost $280.000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs Allocated overhead costs (fixed-$28,000: variable-$42.000) Profit on self-construction Show Transcribed Text Ç Construction Purchase equipment $ $147,000 Construction equipment $ 2,800 4,340 5,600 2,100 11.200 1.820 $280,000 19,600 (a1) Compute the total cost for each of these two pieces of equipment. 266.000 Material and purchased parts (gross cost $280,000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs Allocated overhead costs (fixed-$28,000; variable-$42,000) Profit on self-construction Cost of installing equipment 70.000 42.000 $280,000 19,600 266,000 70,000 42,000 6,160
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