hw5 - Company for the years 2003 and 2004. The balance...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 350 Homework #5 Solutions Fall 2006 Due October 3, 2006 E9-5
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
P 9-8B BYP9-4
Background image of page 3

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

View Full DocumentRight Arrow Icon
Background image of page 4
7. Hilbert Industries has a truck that cost $32,400, purchased on January 1, 2001. It was depreciated using straight-line depreciation with a $5000 salvage value and a 5 year useful live. Hilbert Industries also has a pizza oven that cost $5000. Mr. Hilbert, the founder, is 6’5” and weighs 260 pounds. Record the journal entries for Hilbert’s financial accounting records to record the following scenarios: a. The truck was sold on January 1, 2003 for $18,000 cash. January 1, 2003 Cash 18,000 Accumulated Depreciation 10,960 Loss on Asset Disposal 3,440 Truck 32,400 b. The truck was sold on January 1, 2005 for $11,500 cash. January 1, 2005 Cash 11,500 Accumulated Depreciation 21,920 Gain on Asset Disposal 1,020 Truck 32,400 c. The truck was sold on January 1, 2007 for $2,200 cash. January 1, 2003 Cash 2,200 Accumulated Depreciation 27,400 Loss on Asset Disposal 2,800 Truck 32,400 8. The following information was taken from the financial records for Acme Trucking
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Company for the years 2003 and 2004. The balance sheet items were recorded at the end of the respective years, and the income statement items are for the specified year. 2004 2003 Equipment $550,000 $420,000 Accumulated Depreciation (190,000) (230,000) Equipment (net of depreciation) 360,000 190,000 Depreciation Expense, Machinery 70,000 60,000 Loss on Sale of Machinery 24,000 16,500 Equipment with a historical cost of $180,000 was sold for cash during 2004. a) How much equipment (dollar value) was purchased during 2004? Equipment 420,000 | 180,000 310,000 | | 550,000 | We find the necessary plug entry to be $310,000, so $310,000 in equipment was purchased in 2004. b) How much cash was collected on the disposal of the equipment during 2004? Acc. Deprec. | 230,000 110,000 | 70,000 | | 190,000 Date Cash 46,000 Accumulated Depreciation 110,000 Loss on Asset Disposal 24,000 Equipment 180,000 We find that $46,000 in cash was collected on the disposal of equipment during 2004....
View Full Document

Page1 / 6

hw5 - Company for the years 2003 and 2004. The balance...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online