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Exercise 8-30 292[1]

# Exercise 8-30 292[1] - 18,667 DR Loss on disposal 16,333 CR...

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Exercise 8-30 Solution 292 8-30 a) Jan 1, 2006 DR Machine 90,000 CR Cash 20,000 CR Note payable 70,000 b) Dec 31, 2006 DR Amortization expense 8,000 CR Accumulated amortization 8,000 Dec 31, 2007 DR Amortization expense 8,000 CR Accumulated amortization 8,000 Apr 30, 2008 DR Amortization expense* 2,667 CR Accumulated amortization 2,667 * \$8,000 x 4/12 = 2,667 Apr 30, 2008 DR Cash 55,000 DR Accumulated Amortization

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Unformatted text preview: 18,667 DR Loss on disposal 16,333 CR Machine 90,000 c) 1. 2006 90,000 x (1/10 x 2) = \$18,000 2007 (90,000 – 18,000) x (1/10 x 2) = \$14,400 2. Apr 30, 2008 DR Amortization expense* 3,840 CR Accumulated amortization 3,840 * (90,000 – 18,000 – 14,400) x (1/10 x 2) x 4/12 = 3,840 Apr 30, 2008 DR Cash 55,000 DR Accumulated Amortization 36,240 CR Gain on disposal 1,240 CR Machine 90,000...
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