Question

Exercise 10 09 Presented below are selected transactions at Bramble Company for 2020 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $64,400 on that date. It had a useful life of 10 years with no salvage Sald a computer that was purchased on January 1, 2017. The computer cost $43,400. It had a useful life of 5 years with no salvage value. The computer was $15,800 1 Jan. June 30 m) Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $35,640. It was depreciated based on a 6-year useful ife with a $3,000 salva Journalie all entries required on the above dates, induding entries to update depreciation, where applicable, on assets disposed of. Bramble Company uses straight-line dea (Asume deprecation is sp to date as of December 31, 2019.) (Oedit account titles are automaticaly indented when amount is entered. Do not indent manually journal entries in the onder presented in the problem no etry is required select "o Entry for the account ttles and enter for the amounts mdy Account Titles and Explanation Debit Jan 1 Accumulated Depredation-Equlpment 64400 Eoment s00 June 30 Depreciation Espese 4340 Acclated Deredation Emnt 4340 (Te recond deprecation to date of dpa une 30 Cah 15800 A ed Depraion 300 s of at Galn 220 tenn 4400 1041 PM 15/12/201 144 C 6 O R T O P D F G K L C V M alt ctri A N LL

Answer 1

Answer:

Date	Accounts title	Debit	Credit	Working
01-Jan-17	Accumulated Depreciation	64,400		[$ 64400 x 10 years/10 years]
	Equipment		64,400
	(Machinery retired after 10 years)
30-Jun	Depreciation expense	4,340		[($43400 /5years) x 6/12]
	Accumulated Depreciation		4,340
	(6 month depreciation updated)
30-Jun	Cash	15,800		[Cash received]
	Accumulated Depreciation	30,380		[(43400/5years) x 3.5 years]
	Gain on disposal of plant assets		2,780
	Equipment		43,400	[Cost]
	(computer sold)
31-Dec	Depreciation expense	5,440		[($35,640 - 3000) / 6 years]
	Accumulated Depreciation		5,440
	(depreciation for 2020)
31-Dec	Accumulated Depreciation	27,200		[($35640 - 3000) x 5 years/6 years]
	Loss on disposal of plant assets	8,440		[35,640 - 27,200]
	Equipment		35,640	[Cost]
	(Asset discarded)