Question

Question 6 -/20 View Policies Current Attempt in Progress Presented here are selected transactions for Blossom Limited for 2018. Blossom uses straight-line depreciation and records adjusting entries annually. Sold a delivery truck for $18,360 cash. The truck cost $67,930 when it was purchased on January 1, 2015, and was depreciated based on a four-year useful life with a $6,490 residual value. Jan. 1 Sept. 1 Sold computers that were purchased on January 1, 2016. They cost $10,161 and had a useful life of three years with no residual value. The computers were sold for $490 cash. Retired equipment that was purchased on January 1, 2009. The equipment cost $135,100 and had a useful life of 10 years with no residual value. No proceeds were received. Dec. 30 (a) Record the above transactions. (Credit account titles are automatically indented when the 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.)

Answer 1

Answer Accounts tilles and Explanation January - 5 Cash Pebit) = 18, 360,00 Accumulated Depreciation -Taude (Debit) = 46,080.CO Loss on sale of Truck (Ab) = 3,490.00 Truck (Credit )= 67,990,00 Computer sold and loss on Sales of Computer was record Sep-o! . cash (Debit) = 490.00 Accumulated depreciation-. Coropela = 8467.50 Loss on sale of compute = 1,203,50 Computer (Gedit] - 10.161.00

= (490.00 7 8467. só+ 1,203.50] = $ 10.161.00 Computer Comedit = 10, 161,00 Retisment of equipent wits grecord Dec-30 » Accumulated Depreciabon - Equipment = 135,100 00 · Equipment (Credil]. = 135,100.00 Working Notes Cost of Truck : 67.930 Residueal value : 6490 67.930-6490 Depreciable cost of Track = 61.440

Use feel lefe . he year Depreciation for each year Depreciable cast of Tomuck - 4 years . : $61440 . January ( 205 to January, 2018 15 360 = 1536083 = 46080 Value of Trud on 1/01/2018 = 67930-46080 21 850 Sales value of Truck . 18 360 21850 - 18360 2009. on sale of Track = 3490 Loss on sale of computer Cost of compute = 10,161 Residual vake

Depreciable cost of Truck = 10.161 @ useful life = 3 year Depreciation for each year - Depreciable cost of Truck 3 years 10.161 Depreciation 3.3.387 from yoll2016 to 1.al 2018 2. 338 7X 2.5 -8 67.50 Value of compute on 01/09/2018 a 10161-8467.50 b Compute =1693.50 : 2 490 490 Sale value of =169.50 - 490 "Looss on scale of compula = 1,203,50

Loss on retiment of equipment Date of purchas of equipment = 1101/2009 Dale of relement of equipant : 30/12/2018 Equipment used for Number of years 10 year 1 ose feel life of arreto 10 year The tohal period of use of equipment care sare No of loss or gain on requipment of refermat