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? https //edugenwileyplus.com nment cit HV ?NSIR?OTOR FULL SCREEN PRINIERVERSION 1BACK NEXT Problem 9-3A Blossom Company had the following assets on January 1, 2017 Useful Life Item Cost Purchase Date (in years) Salvage Value Machinery $85,200 Jan. 1, 2007 Forklift 10 36,000 40,080 Jan. 1, 2014 Jan. 1, 2012 Truck During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $14,400. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016. (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.) Debit Date Account Titles and Explanation 3,600,000 June 30 Depreciation Expense 3,600,000 Accumulated Depreciation-Equipment 6/27/2018 2

Solution

Jan-01 Accumulated depreciation - Machinery $ 85,200 Machinery $ 85,200 Jun-30 Depreciation expenses ($36,000 / 5 * 6/12) $    3,600 Accumulated depreciation - Forklift $    3,600 Cash $ 14,400 Accumulated depreciation - Forklift (($36,000/5*3)+$3,600) $ 25,200 Forklift $ 36,000 Gain on sale of assets $    3,600 Dec-31 Depreciation expense (($40,080 -$3,600)/8*1) $    4,560 Accumulated depreciation - Truck   $    4,560 Accumulated depreciation - Truck (($40,080 -$3,600)/8*5)+$4,560) $ 27,360 Loss on disposal of plant assets $ 12,720 Truck $ 40,080