{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch 8_Solutions

# ch 8_Solutions - M8-4 21,500 3 x(21,500 1,500 x(1/4 =...

This preview shows pages 1–3. Sign up to view the full content.

M8-4) 21,500 – 3 x [(21,500 - 1,500) x (1/4)] = \$6,500 M8-5) 21,500 - [(21,500) x (2/4)] + [(21,500 – 10,750) x (2/4)] + [(21,500 – 16,125) x (2/4)]= \$2,688 M8-6) [(21,500 – 1,500) / 20,000] x 3,000 = \$3,000 [(21,500 – 1,500) / 20,000] x 8,000 = \$8,000 [(21,500 – 1,500) / 20,000] x 7,000 = \$7,000 [(21,500 – 1,500) / 20,000] x 2,000 = \$2,000 3,000 + 8,000 + 7,000 + 2,000 = \$20,000 21,500 – 20,000 = \$1,500 M8-8) (6,200 – 200) x (1/12) = \$500 Cash received \$1,400 Original cost of shelving units \$6,200 Less: Accumulated depreciation (\$500 x 10 years) \$5,000 Book value at date of sale \$1,200 Gain on sale of shelving units \$200 Depreciation Expense 500 Accumulated depreciation 500 Cash 1,400 Accumulated depreciation 5,000 Shelving units 6,200 Gain on sale of shelving units 200 P8-6) 1) A) Cash 8,200 Accumulated depreciation 12,750 Machine A 20,000 Gain on sale of machine A 950 B) Depreciation Expense 1,930 Accumulated depreciation 1,930 Cash 23,000 Notes receivable (12% interest) 4,000 Accumulated depreciation 17,370 Machine B 42,600 Gain on sale of machine B 1,770 C) Accumulated Depreciation 57,600 Loss due to impairment of assets 18,600 Machine C 76,200 2) A) The journal entry for machine A shows a debit to cash received from the sale of the machine, a debit to the accumulated depreciation for all 6 years the machine was used by the company, a credit to original cost of the machine since the machine no longer belongs to the company, as well as a

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
credit to the gain on sale of the machine. It does not however show a debit to depreciation expense or a
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}