Solution:
Journal Entries | |||
Transaction | Particulars | Debit | Credit |
31-Aug | Depreciation expense Dr ($88800*8/12) | $59,200 | |
To Accumulated Depreciation | $59,200 | ||
(To record current depreciation) | |||
31-Aug | Cash Dr | $6,36,400 | |
Accumulated Depreciation Dr ($532800+59200) | $5,92,000 | ||
Loss on Disposal of Machine Dr | $6,95,600 | ||
To Machine | $19,24,000 | ||
(To record Loss of machine fire) | |||
Journal Entries | |||
Transaction | Particulars | Debit | Credit |
01-Apr | Depreciation expense Dr ($88800*3/12) | $22,200 | |
To Accumulated Depreciation | $22,200 | ||
(To record current depreciation) | |||
01-Apr | Cash Dr | $15,39,200 | |
Accumulated Depreciation Dr ($532800+59200) | $5,55,000 | ||
To Machine | $19,24,000 | ||
To Gain on sale of Machine | $1,70,200 | ||
(To record machine sale) | |||
Journal Entries | |||
Transaction | Particulars | Debit | Credit |
31-Jul | Depreciation expense Dr ($88800*7/12) | $51,800 | |
To Accumulated Depreciation | $51,800 | ||
(To record current depreciation) | |||
31-Jul | Contribution Expense Dr | $16,28,000 | |
Accumulated Depreciation Dr ($532800+59200) | $5,84,600 | ||
To Machine | $19,24,000 | ||
To Gain on sale of Machine | $2,88,600 | ||
(To record machine donated) |
*Exercise 10-24 On December 31, 2020, Riverbed Inc. has a machine with a book value of...
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