Presented below are selected transactions for Mohamad Company for 2008. Jan. 1 Received $3,000 scrap value on retirement of machinery that was purchased on January 1, 1998. The machine cost $80,000 on that date, and had an estimated useful life of 10 years with no residual value. April 30 Sold a printing machine for $50,000 that was purchased on January 1, 2005. The printer cost $90,000, and had an estimated useful life of 5 years with no residual value. Dec. 31 Discarded a business automobile that was purchased on September 1, 2003. The car cost $20,000 and was amortized on an 8-year useful life with a residual value of $800. Instructions Journalize all entries required as a result of the above transactions. Mohamad Company uses the straight-line method of amortization and has recorded amortization to December 31, 2007. GENERAL JOURNAL DATE PARTICULARS PR DEBIT CREDIT

Presented below are selected transactions for Mohamad Company for 2008. Jan. 1 Received $3,000 scrap value on retirement of machinery that was purchased on January 1, 1998. The machine cost $80,000 on that date, and had an estimated useful life of 10 years with no residual value. April 30 Sold a printing machine for $50,000 that was purchased on January 1, 2005. The printer cost $90,000, and had an estimated useful life of 5 years with no residual value. Dec. 31 Discarded a business automobile that was purchased on September 1, 2003. The car cost $20,000 and was amortized on an 8-year useful life with a residual value of $800. Instructions Journalize all entries required as a result of the above transactions. Mohamad Company uses the straight-line method of amortization and has recorded amortization to December 31, 2007. GENERAL JOURNAL DATE PARTICULARS PR DEBIT CREDIT

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

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