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E9-9

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Submitted By nafreak2000
Words 807
Pages 4
E9-9
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2001.The machine cost
$62,000 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2008.The computer cost $40,000. It had a useful life of 5 years with no salvage value.The computer was sold for $14,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2007. The truck cost
$39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

Instructions
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2010.)

2011 | | | | 1-Jan | Accumulated Depreciation—Machinery | $ 62,000 | | | Machinery | | $ 62,000 | | (To record retirement of fully depreciated equipment) | | | | | | | 30-Jun | Cash | $ 14,000 | | | Accumulated Depreciation—Computer | $ 24,000 | | | Loss on Disposal of Assets | $ 2,000 | | | Computer | | $ 40,000 | | (To record sale of computer at a loss) | | | | | | | 31-Dec | Accumulated Depreciation—Delivery Truck | $ 24,000 | | | Loss on Disposal of Assets | $ 15,000 | | | Delivery Truck | | $ 39,000 | | (To record retirement of Delivery Truck at a loss) | | |

P9-5A At December 31, 2011, Jimenez Company reported the following as plant assets.

Land $ 4,000,000
Buildings $28,500,000
Less: Accumulated depreciation—buildings 12,100,000 16,400,000
Equipment 48,000,000
Less: Accumulated depreciation—equipment 5,000,000 43,000,000
Total plant assets

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