Question

bu WUIR Sheet II. (33) Journalize the following transactions according to the descriptions and requirements: 1. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of $21,500. Straight-line depreciation is taken each year assuming a five-year life and a salvage cost of $4,000. The machine is disposed on Jun 29, 2017. 1) Journalize the depreciation cost of the Year 2013 and 2017. 2) On Jun 29, 2017 the machine is sold for $5,500 for cash. Journalize the transaction. 2. Journalize the following transactions for the company: a. service performed but not recorded total $560. b. Salaries earned by employees of $900 have not been recorded. 3. Accounts receivable transactions are provided for the company: Dec. 31,2016 The company estimated that 5% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $650,000 and $2,300(debit), respectively. Mar. 5, 2017 The company determined that T. Marz's $3,700 account and D. Weigh's $6,900 account were uncollectible. Jun. 15, 2017 Weigh paid the amount that had been written off on March 5. Prepare the journal entries on December 31, 2016, Mar 5, 2017 and June 5, 2017.

Answer 1

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11 I KOOL Col . ) Calculation of depreciation per year 2 Cost of machine - $21500 Lessi Saliage Cost = ($9000) Cost for depreciation - $ 17500 (-) Life of machine syears Depreciation per year . $3500 (17500/5years)

Journal Entries Date General ledger in Debit Credit 3500 3500 Dec 31 Depreciation expenses 2013 To acceemulated I depreciation - machine (To record depreciation for the year 2013) 3500 3500 Dec 31 Depreciation expenses 2014 To accumulated depreciation -machine e to record depreciation for the year 2014) 3500 3500 Dec 31 Depreciation expenses 2015 To accumulated depreciation - machine (to second depreciation for the year 2015)

13500 Dec 31 Deprecation expenses 3500 2016 To accumulated e depreciation - Machine (to record dep exp) JASO Jene 9 Depreciation exp (3500x. y 1750 _-_2017 - To acumulated dop - machine on (To recard depreciation. exp upto date of sale June 29 2017 cash 5500 Accumulated dep-machine 15750 ( 3500+3500+ 3500+ 3500+1750) Loss od sale of machine 350 (21500 - 5500 - 15750) To machine 21500 (To record sale of machine & recognition of loss)