Question

Need help with this Assignment please

Instructions: Journalize each transaction below. Prepare all necessary schedules.

1. Changed oil and oil filter on truck, $125 cash

2. Installed equipment on truck, $2,500 cash.

3. Replaced motor on equipment, $3,500 cash

4. Madison Company retired some equipment that cost $135,000 and had accumulated depreciation of $130,000. Journalize the retirement of the equipment.

5. Madison Co. sold office equipment that originally cost $55,000 for $5,000 cash. The equipment had accumulated depreciation in the amount of $49,000. Record the sale of the equipment.

6. Assume Madison Co. sold the equipment in #5 for $37,500 and had accumulated depreciation in the amount of $20,000. Record the sale.

7. Land was purchased costing $98,000; a building was removed at a cost of $5000, with proceeds of $800 from salvaged materials; broker fees were $3,800; attorney’s fees were $1990; journalize the land purchase (assume 20% paid and remainder assigned to a note).

8. Machinery was purchased for $128,000 cash. It had a salvage value of $8,000 and an estimated useful life of 6 years. Journalize the purchase and the first two month’s depreciation.

9. The machinery in #8 was sold for $26,000 cash after year 5. Journalize the sale.

10. On August 1, 2010 Madison Co. purchased office equipment for $8000 cash. The estimated useful life is 4 years with a salvage value of $800.

• Journalize the purchase of the equipment and the depreciation expense for 2010
• Prepare a schedule showing the depreciation expense, accumulated depreciation, and book value of the equipment.
• Journalize the sale of the equipment in 2014 if it was sold for $800 cash
• Assume it was sold for $3,500 at the end of 2012
• Assume it was sold for $2,100 at the end of 2013

11. On January 1, 2010 Madison Co. purchased a vehicle for $55,000 cash. The useful life is expected to be 5 years with an estimated salvage value of $5000. At the end of year 3, Madison decided to increase the useful life to 7 years (in total) and reduce the salvage value to $3000.

• Journalize the purchase
• Journalize the first year’s depreciation
• What is the annual depreciation beginning in year 4?

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Answer 1