Presented here are selected transactions for Ivanhoe Limited

Presented here are selected transactions for Ivanhoe Limited for 2018. Ivanhoe uses straight-line depreciation and records adjusting entries annually. Jan. 1 Sold a delivery truck for $16,740 cash. The truck cost $58,120 when it was purchased on January 1, 2015, and was depreciated based on a four- Sept. 1 Sold computers that were purchased on January 1, 2016. They cost $9,927 and had a useful life of three years with no residual value. The Dec. 30 Retired equipment that was purchased on January 1, 2009. The equipment cost $152,400 and had a useful life of 10 years with no residual year useful life with a $5,560 residual value. computers were sold for $490 cash. value. No proceeds were received (a) Record the above transactions. (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.) Date Account Titles and Explanation Debit Credit Jan. 1 Sept. 1 (To record depreciation expense) (To record the sale of equipment for cash) Dec. 30 (To record depreciation expense) 30 (To record the retirement of equipment)

Solution

**Delievery Truck:

Depreciation per year [cost -Salvage value ]/useful life

        =[58120-5560]/4

        = 13140

Accumulated depreciation for 3 years (2015-1jan 2018) 13140*3 = 39420

***Depreciation on computer = 9927/3= $3309 per year

Accumulated depreciation for 2 years :[3309*2] = 6618              [1jan2016- 31dec 2017]

Date	Account	Debit	credit
Jan1	Cash	16740
	Accumulated depreciation-Delievery truck	39420
	Loss on sale of Delievery truck	1960
	Delievery truck		58120
1 sep	Depreciation expense	2206
	Accumulated depreciation -computer [3309*8/12]		2206
	[Depreciation recorded for 8 months]]
	cash	490
	Accumulated depreciation [6618+2206]	8824
	Loss on sale of computer	1103
	computer		9927
Dec30	Accumulated depreciation-Equipment	152400
	Equipment		152400
	[Equipment retired]