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$1.00 Accounting question

From Mathematics: General-Mathematics
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Due on Mar. 11, 2012
Asked on Mar. 09, 2012 at 10:28:06AM

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dlj2005
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Questions Asked: 8
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Earned: $48.00

E10-9

Presented below are selected transactions at Ingles Company for 2010.

Jan. 1	Retired a piece of machinery that was purchased on January 1, 2000. 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, 2007. The computer cost $40,000. 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, 2006. The truck cost $39,000. 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. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2009.) (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Date	Account/Description	Debit	Credit
Jan. 1	Gain on disposalAccumulated depreciation-ComputerAccumulated depreciation-TruckCashLoss on disposalDelivery truckAccumulated depreciation-MachineryMachineryDepreciation expenseComputer
	Accumulated depreciation-MachineryComputerCashGain on disposalAccumulated depreciation-ComputerAccumulated depreciation-TruckLoss on disposalDelivery truckMachineryDepreciation expense
June 30	CashGain on disposalAccumulated depreciation-MachineryMachineryLoss on disposalAccumulated depreciation-ComputerDelivery truckComputerDepreciation expenseAccumulated depreciation-Truck
	Depreciation expenseComputerCashDelivery truckGain on disposalMachineryAccumulated depreciation-TruckLoss on disposalAccumulated depreciation-ComputerAccumulated depreciation-Machinery
June 30	Delivery truckDepreciation expenseComputerAccumulated depreciation-ComputerLoss on disposalCashAccumulated depreciation-MachineryGain on disposalAccumulated depreciation-TruckMachinery
	Accumulated depreciation-ComputerAccumulated depreciation-MachineryComputerGain on disposalDelivery truckCashDepreciation expenseMachineryAccumulated depreciation-TruckLoss on disposal
	Delivery truckComputerGain on disposalAccumulated depreciation-ComputerMachineryAccumulated depreciation-MachineryDepreciation expenseCashAccumulated depreciation-TruckLoss on disposal
	Accumulated depreciation-MachineryMachineryDepreciation expenseAccumulated depreciation-TruckDelivery truckCashAccumulated depreciation-ComputerComputerGain on disposalLoss on disposal
Dec. 31	Accumulated depreciation-ComputerAccumulated depreciation-TruckLoss on disposalDelivery truckGain on disposalAccumulated depreciation-MachineryDepreciation expenseMachineryComputerCash
	MachineryGain on disposalAccumulated depreciation-TruckDepreciation expenseLoss on disposalAccumulated depreciation-MachineryCashAccumulated depreciation-ComputerComputerDelivery truck
Dec.31	Depreciation expenseAccumulated depreciation-ComputerComputerAccumulated depreciation-MachineryGain on disposalAccumulated depreciation-TruckCashMachineryDelivery truckLoss on disposal
	Loss on disposalAccumulated depreciation-TruckMachineryGain on disposalDepreciation expenseAccumulated depreciation-ComputerDelivery truckAccumulated depreciation-MachineryComputerCash
	Depreciation expenseLoss on disposalMachineryDelivery truckComputerCashAccumulated depreciation-ComputerAccumulated depreciation-TruckAccumulated depreciation-MachineryGain on disposal