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Unformatted text preview: E10-9 Presented below are selected transactions at Ingles Company for 2008. Jan. 1 Retired a piece of machinery that was purchased on January 1, 1998.The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2005.The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2004. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Instructions Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2007.) Jan. 1 Accumulated Depreciation 62,000 Equipment 62,000 June 30 Cash 14,000 Accumulated Depreciation 36,000 Gain on Disposal 10,000 Equipment 40,000...
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This note was uploaded on 03/28/2011 for the course ACCT 349 taught by Professor Goyal during the Spring '09 term at University of Phoenix.
- Spring '09
- Financial Accounting