Question

Journalize the following transactions for the Round Company and show all calculations:
201X
Jan. 1 Sold a truck for $1,300 that cost $6,700 and had accumulated depreciation of $6,000.
Feb. 10 A machine costing $3,100 with accumulated depreciation of $2,150 was destroyed in a fire.
The insurance company settled the claim for $450.
May 1 Traded in a machine costing $18,000 with $14,500 of accumulated depreciation for a new machine costing $25,100 with a trade-in allowance of $3,000. Note that depreciation is up-to-date. The loss is to be recognized.
July 8 Traded in a machine costing $46,000 with $34,000 of accumulated depreciation (which is up-to-date) for a new machine for a cash price of $47,000 and a trade-in allowance of $15,000.
Aug. 9 Journalize the May 1 transaction using the income tax method.
Sept. 12 A truck costing $7,500 and fully depreciated was disposed of.



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  • CreatedApril 24, 2014
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