Record entries for the disposal


Question 1:  Wang Co. has delivery equipment that cost $47,570 and has been depreciated $23,170.

Record entries for the disposal under the following assumptions.

(a) It was scrapped as having no value.

(b) It was sold for $36,780.

(c) It was sold for $19,050.

Question 2: Here are selected 2014 transactions of Cleland Corporation.

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $61,740 and had a useful life of 10 years with no salvage value.

June 30 Sold a computer that was purchased on January 1, 2012. The computer cost $35,800 and had a useful life of 4 years with no salvage value. The computer was sold for $4,120 cash.

Dec. 31 Sold a delivery truck for $9,270 cash. The truck cost $23,820 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,230 salvage value.

Required: Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Record entries for the disposal
Reference No:- TGS03038345

Expected delivery within 24 Hours