Journalize the following transactions for the Robe Company and show all calculations: 201X Jan. 1 Sold a
Question:
Journalize the following transactions for the Robe Company and show all calculations:
201X
Jan. 1 Sold a truck for $1,350 that cost $6,650 and had accumulated depreciation of $5,900.
Feb. 10 A machine costing $2,800 with accumulated depreciation of $1,950 was destroyed in a fire. The insurance company settled the claim for $300.
May 1 Traded in a machine costing $18,150 with $15,500 of accumulated depreciation for a new machine costing $24,300 with a trade-in allowance of $2,400. Note that depreciation is up-to-date. The loss is to be recognized.
July 8 Traded in a machine costing $47,000 with $30,000 of accumulated depreciation (which is up-to-date) for a new machine for a cash price of $50,000 and a trade-in allowance of $18,000.
Aug. 9 Journalize the May 1 transaction using the income tax method.
Sept. 12 A truck costing $5,500 and fully depreciated was disposed of.
Step by Step Answer:
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater