Question

Return to Blackboard Weygandt Financial Accounting, 10e Help System Announcements Exercise 9-9 Your answer is partially correct. Try again. Presented below are selected transactions at Cheyenne Corp. for 2019. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $61,900 on that date. It had a useful We of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2016. The computer cost $36,600. It had a useful life of years with no salvage value. The computer was sold for $13,700. Dec.31 Discarded a delivery truck that was purchased on January 1, 2015. The truck cost $38,400. It was depreciated based on a 6-year useful le with a $3,000 Savage value Journalize all entries required on the above dates, induding entries to update depreciation, where applicable, on assets disposed of. Cheyenne Corp. uses straight line depreciation (Assume depreciation is up to date as of December 31, 2018.) (Credit account titles and automatically indented when amount is entered. Do not indent manually. Record journal entries in order presented in the problem. If no entry is required, select "No Entry for the account tits and enter for the amounts. Do not round Intermediate calculations.) Date Account Titles and Explanation Debit Jan. 1 M Accumulated Depreciation Machine Machine June 30 V (To record depreciation to date of disposal) June 30 (To record sale of computer)

Answer 1

Date	Accounts Titles and Explanation	Debit	Credit
Jan 01	Accumulated Depreciation - Equipment	$61,900
	Equipment		$61,900
June 30	Depreciation Expenses	$3,660		($36,600/5 x 6/12]
	Accumulated Depreciation - Equipment		$3,660
	(To record depreciation expenses on computer)
June 30	Cash	$13,700
	Accumulated Depreciation	$25,620		($36,600 x 3/5 + $3,660)
	Equipment		$36,600
	Gain on Disposal of Plant Assets		$2,720
	(To record sale of computer)
Dec 31	Depreciation Expenses	$5,900		($38,400 - $3,000) x 1/6
	Accumulated Depreciation - Equipment		$5,900
	(To record depreciation expenses on Truck)
Dec 31	Accumulated Depreciation - Equipment	$29,500		($38,400 - $3,000) x 5/6
	Loss on Disposal of Plant Assets	$8,900
	Equipment		$38,400
	(To record sale of Truck)