On December 31, 2020, Coronado Inc. has a machine with a book value of $1,052,800. The original cost and related accumulated depreciation at this date are as follows.
Machine |
$1,456,000 |
|
Less: Accumulated depreciation |
403,200 |
|
Book value |
$1,052,800 |
Depreciation is computed at $67,200 per year on a straight-line
basis.
Presented below is a set of independent situations. For each
independent situation, indicate the journal entry to be made to
record the transaction. Make sure that depreciation entries are
made to update the book value of the machine prior to its
disposal.A fire completely destroys the machine on August 31, 2021.
An insurance settlement of $481,600 was received for this casualty.
Assume the settlement was received immediately. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the
amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
August 31, 2021 |
enter an account title to record current depreciation |
enter a debit amount |
enter a credit amount |
enter an account title to record current depreciation |
enter a debit amount |
enter a credit amount |
|
(To record current depreciation.) |
|||
August 31, 2021 |
enter an account title to record loss of the machine |
enter a debit amount |
enter a credit amount |
enter an account title to record loss of the machine |
enter a debit amount |
enter a credit amount |
|
enter an account title to record loss of the machine |
enter a debit amount |
enter a credit amount |
|
enter an account title to record loss of the machine |
enter a debit amount |
enter a credit amount |
|
(To record loss of the machine.) |
On April 1, 2021, Coronado sold the machine for $1,164,800 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
April 1, 2021 |
enter an account title to record current depreciation |
enter a debit amount |
enter a credit amount |
enter an account title to record current depreciation |
enter a debit amount |
enter a credit amount |
|
(To record current depreciation.) |
|||
April 1, 2021 |
enter an account title to record sale of the machine |
enter a debit amount |
enter a credit amount |
enter an account title to record sale of the machine |
enter a debit amount |
enter a credit amount |
|
enter an account title to record sale of the machine |
enter a debit amount |
enter a credit amount |
|
enter an account title to record sale of the machine |
enter a debit amount |
enter a credit amount |
|
(To record sale of the machine.) |
On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,232,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
July 31, 2021 |
enter an account title to record current depreciation |
enter a debit amount |
enter a credit amount |
enter an account title to record current depreciation |
enter a debit amount |
enter a credit amount |
|
(To record current depreciation.) |
|||
July 31, 2021 |
enter an account title to record donation of the machine |
enter a debit amount |
enter a credit amount |
enter an account title to record donation of the machine |
enter a debit amount |
enter a credit amount |
|
enter an account title to record donation of the machine |
enter a debit amount |
enter a credit amount |
|
enter an account title to record donation of the machine |
enter a debit amount |
enter a credit amount |
|
(To record donation of the machine.) |
On December 31, 2020, Coronado Inc. has a machine with a book value of $1,052,800. The...
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