Problem 3 10 points Prepare the journal entries to record th

Problem #3, (10 points) Prepare the journal entries to record the following transactions for the Sysco Company, which has a year end and uses the straight-line method of depreciation. calendar (a) On June 30, 2017 the company sold old office equipment for $18,000. The office equipment originally (b) On September 30, 2017, Sysco Company sold old delivery equipment for $9,000. The delivery equipment was purchased on January 1,2015, for $19,000 and was estimated to have a $4,000 salvage value at the end of its S-year life. Depreciation on the delivery equipment has been recorded through December 31, 2016. Prepare the journal entries to record the depreciation expense and sale of asset. Date June 30 Account Titles and Explanation Debit To record sale of office equipment Sept. 30 To record depreciation Sept 30 To record sale of delivery equipment

Solution

                                        Journal Entries

Date

Particulars

Dr

Cr

June 30

2017

Depreciation A/c   dR

   To Office Equipment A/c

10000

10000

June 30

2017

Bank A/c Dr

To Office Equipment A/c (WDV)

   To Profit On Sale Of office Equipment

18000

14000

4000

Sep 30

Depreciation A/c    dr (working Notes)

   To DeliverY Equipment A/c

2250

2250

Sep 30

Bank A/c    Dr

Loss on sale Of Equipment

    To Delivery Equipment A/c (wdv)

     

9000

3750

12750

Working Notes

Calculation Of profit & Loss Onm sale Of office Equipment

           Original Value   24000

       Less Depreciation 10000

Written Down Value 14000

             Sale                    18000

Profit On Sale                 4000

Calcualation Of depreciation of delivery Equipment

Depreciation = original value – scrap value/ no of useful years

                           19000-4000/5

                            3000

Depreciation For 9 months 3000*9/12=2250

Calculation Of profit & Loss On sale Of Delivery Equipment Equipment

           Original Value   15000

       Less Depreciation 2250

Written Down Value 12750

             Sale                    9000

Loss On Sale                3750

Date	Particulars	Dr	Cr
June 30 2017	Depreciation A/c   dR    To Office Equipment A/c	10000	10000
June 30 2017	Bank A/c Dr To Office Equipment A/c (WDV)    To Profit On Sale Of office Equipment	18000	14000 4000
Sep 30	Depreciation A/c    dr (working Notes)    To DeliverY Equipment A/c	2250	2250
Sep 30	Bank A/c    Dr Loss on sale Of Equipment     To Delivery Equipment A/c (wdv)	9000 3750	12750