Retirement Method: In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation. Replacement depreciation method: In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense. To prepare : Journal entries to record for each of the transactions.

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Answer 1

Question

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

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Answer 2

Question

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

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Answer 3

Question

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

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Answer 4

Question

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

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Answer 5

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

Answer 6

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

Answer 7

Chapter 11, Problem 11.36E

(1)

To determine

Retirement Method:

In the retirement depreciation method, the asset account is increased for the cost of subsequent expenditures. When an asset is disposed of, the asset account is credited for its cost, and depreciation expense is recorded for the difference between cost and sale proceeds, if any. No other entries are made for depreciation.

Replacement depreciation method:

In the replacement depreciation method, the initial acquisition of assets is recorded as same as in the retirement method that is, the aggregate cost is increased. But, depreciation expense is the amount paid for new or replacement assets. Sale proceeds received from asset dispositions reduce depreciation expense.

To prepare: Journal entries to record for each of the transactions.

Answer 8

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

Answer 9

(2)

To determine

To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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To prepare: Journal entries to record each of the transactions assuming that the Company CC uses the replacement depreciation method instead of the retirement method.

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