Problem 9-03ASunland Company had the following assets on January 1, 2022.Item Cost Purchase Date Useful Life(in years) Salvage ValueMachinery $77,000 Jan. 1, 2012 10 $ 0Forklift 36,000 Jan. 1, 2019 5 0Truck 42,400 Jan. 1, 2017 8 3,000During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,600. The truck was discarded on December 31.Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditchoose a transaction date Jan. 1June 30Dec. 31enter an account title enter a debit amount enter a credit amount  enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1June 30Dec. 31enter an account title to record depreciation expense on forklift enter a debit amount enter a credit amount  enter an account title to record depreciation expense on forklift enter a debit amount enter a credit amount  (To record depreciation expense on forklift)  choose a transaction date Jan. 1June 30Dec. 31enter an account title to record sale of forklift on June 30 enter a debit amount enter a credit amount  enter an account title to record sale of forklift on June 30 enter a debit amount enter a credit amount  enter an account title to record sale of forklift on June 30 enter a debit amount enter a credit amount  enter an account title to record sale of forklift on June 30 enter a debit amount enter a credit amount  (To record sale of forklift)  choose a transaction date Jan. 1June 30Dec. 31enter an account title to record depreciation expense on truck enter a debit amount enter a credit amount  enter an account title to record depreciation expense on truck enter a debit amount enter a credit amount  (To record depreciation expense on truck)  choose a transaction date Jan. 1June 30Dec. 31enter an account title to record sale of truck on December 31 enter a debit amount enter a credit amount  enter an account title to record sale of truck on December 31 enter a debit amount enter a credit amount  enter an account title to record sale of truck on December 31 enter a debit amount enter a credit amount  (To record sale of truck)

Question
Asked Nov 4, 2019

Problem 9-03A

Sunland Company had the following assets on January 1, 2022.

Item   Cost   Purchase Date   Useful Life
(in years)
  Salvage Value
Machinery
  $77,000   Jan. 1, 2012   10   $ 0
Forklift
  36,000   Jan. 1, 2019   5   0
Truck
  42,400   Jan. 1, 2017   8   3,000

During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,600. The truck was discarded on December 31.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title
 
enter a debit amount
 
enter a credit amount
 
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record depreciation expense on forklift
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record depreciation expense on forklift
 
enter a debit amount
 
enter a credit amount
 
  (To record depreciation expense on forklift)    
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
  (To record sale of forklift)    
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record depreciation expense on truck
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record depreciation expense on truck
 
enter a debit amount
 
enter a credit amount
 
  (To record depreciation expense on truck)    
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record sale of truck on December 31
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of truck on December 31
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of truck on December 31
 
enter a debit amount
 
enter a credit amount
 
  (To record sale of truck)
check_circleExpert Solution
Step 1

Prepare journal entry for depreciation of machinery.

Post
Ref
Debit (S)
Date
Description
Accumulated depreciation-machinery
Machinery
(To record depreciation on machinery)
Credit(S)
January 1
77,000
77,000
help_outline

Image Transcriptionclose

Post Ref Debit (S) Date Description Accumulated depreciation-machinery Machinery (To record depreciation on machinery) Credit(S) January 1 77,000 77,000

fullscreen
Step 2

Prepare journal entry for depreciation of forklift.

Post
Ref
Debit (S)
Description
Depreciation expense
Accumulated depreciation
(To record depreciation for forklift)
Date
Credit(S)
June 30
3,600
3,600
help_outline

Image Transcriptionclose

Post Ref Debit (S) Description Depreciation expense Accumulated depreciation (To record depreciation for forklift) Date Credit(S) June 30 3,600 3,600

fullscreen
Step 3

Working Note:

Calculate the depreciation for f...

Depreciaiton from
2019 to 2021
Depreciation
Depreciaiton from
+
2022
6
S36,000 x $36,000 xx-
5 12
=S21,600+$3,600
=S25,200
help_outline

Image Transcriptionclose

Depreciaiton from 2019 to 2021 Depreciation Depreciaiton from + 2022 6 S36,000 x $36,000 xx- 5 12 =S21,600+$3,600 =S25,200

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: for which funds are budgetary comparison schedules or statements required? should the actual revenue...

A: Financial accounting standards board (FASB):This is the organization which creates, develops, and ap...

question_answer

Q: Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without additional ...

A: Differential Analysis: Differential analysis is a management accounting tool in which a company anal...

question_answer

Q: Suppose Casey Title Company normally charges $400 for services related to selling a house. As part o...

A: Click to see the answer

question_answer

Q: Shadee Corp. expects to sell 640 sun visors in May and 350 in June. Each visor sells for $25. Shadee...

A: Flexible overhead budget: A flexible overhead budget is referred to a thorough plan for controlling ...

question_answer

Q: Cornerstone Exercise 9-46 (Appendix 9A) Bond Issue Price On December 31, 2014, Callahan Auto issued ...

A: Click to see the answer

question_answer

Q: Text Ch.2 #2 Which of the following statements describe tranasactions that would be recorded in an a...

A: Accounting Transaction: An economic event, which causes impact (increases or decreases the value of ...

question_answer

Q: Parrish Ch2 Pg31  What accounts would be debited or credited for each trans action? 1) Shareholder i...

A: Journal Entries

question_answer

Q: Vaughn Manufacturing's contribution margin is $20 per unit for Product A and $35 for Product B. Prod...

A: Formula to compute the contribution margin per unit of limited resources for each product.

question_answer

Q: Break-Even Sales Currently, the unit selling price of a product is $290, the unit variable cost is $...

A: Calculate break-even point in units.