Zimmer Company sold the following two machines in 2021: Machine A Machine B Cost $76,000 $80,000 Purchase date 5/1/17 1/1/18 Useful life 8 years 5 years Salvage value $4,000 $4,000 Depreciation method Straight-line Double-declining-balance Date sold Sales price 7/1/21 $35,000 8/1/21 $16,000 Journalize all entries required to update depreciation and record the sales of the two assets in 2021. The company has recorded depreciation on the machines through December 31, 2020. (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.) Machine A Date Account Titles and Explanation July 1 Depreciation Expense July 1 Accumulated Depreciation-Machine (To record depreciation expense) Cash Accumulated Depreciation-Machine Debit 4500 35000 36000 Loss on Disposal of Plant Assets 5000 Machine (To record the sale of asset) Machine B Date Account Titles and Explanation Debit Aug. 1 Depreciation Expense Accumulated Depreciation-Machine (To record depreciation expense) Aug. 1 Cash 4500 16000 Accumulated Depreciation-Machine 17000 Gain on Disposal of Plant Assets 5000 Machine (To record the sale of asset) Credit 4500 BOOD 76000 Credit 4500 80000
Zimmer Company sold the following two machines in 2021: Machine A Machine B Cost $76,000 $80,000 Purchase date 5/1/17 1/1/18 Useful life 8 years 5 years Salvage value $4,000 $4,000 Depreciation method Straight-line Double-declining-balance Date sold Sales price 7/1/21 $35,000 8/1/21 $16,000 Journalize all entries required to update depreciation and record the sales of the two assets in 2021. The company has recorded depreciation on the machines through December 31, 2020. (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.) Machine A Date Account Titles and Explanation July 1 Depreciation Expense July 1 Accumulated Depreciation-Machine (To record depreciation expense) Cash Accumulated Depreciation-Machine Debit 4500 35000 36000 Loss on Disposal of Plant Assets 5000 Machine (To record the sale of asset) Machine B Date Account Titles and Explanation Debit Aug. 1 Depreciation Expense Accumulated Depreciation-Machine (To record depreciation expense) Aug. 1 Cash 4500 16000 Accumulated Depreciation-Machine 17000 Gain on Disposal of Plant Assets 5000 Machine (To record the sale of asset) Credit 4500 BOOD 76000 Credit 4500 80000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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Transcribed Image Text:Zimmer Company sold the following two machines in 2021:
Machine A
Machine B
Cost
$76,000
$80,000
Purchase date
5/1/17
1/1/18
Useful life
8 years
5 years
Salvage value
$4,000
$4,000
Depreciation method
Straight-line
Double-declining-balance
Date sold
Sales price
7/1/21
$35,000
8/1/21
$16,000
Journalize all entries required to update depreciation and record the sales of the two assets in 2021. The company has recorded
depreciation on the machines through December 31, 2020. (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.)
Machine A
Date Account Titles and Explanation
July 1
Depreciation Expense
July 1
Accumulated Depreciation-Machine
(To record depreciation expense)
Cash
Accumulated Depreciation-Machine
Debit
4500
35000
36000
Loss on Disposal of Plant Assets
5000
Machine
(To record the sale of asset)
Machine B
Date Account Titles and Explanation
Debit
Aug. 1
Depreciation Expense
Accumulated Depreciation-Machine
(To record depreciation expense)
Aug. 1
Cash
4500
16000
Accumulated Depreciation-Machine
17000
Gain on Disposal of Plant Assets
5000
Machine
(To record the sale of asset)
Credit
4500
BOOD
76000
Credit
4500
80000
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