Pine Company had the following assets on January 1, 2017. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery$71,000 Jan. 1, 2007...
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Question

Pine Company had the following assets on January 1,

2017.

Item

Cost

Purchase Date

Useful Life (in years)

Salvage Value

Machinery$71,000

Jan. 1, 2007

10

$ -0-

Forklift30,000

Jan. 1, 2014

5

-0-

Truck33,400

Jan. 1, 2012

8

3,000

During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,000. The truck was discarded on December 31.

Instructions

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight‐line depreciation. All depreciation was up to date as of December 31, 2016.

Loss on truck disposal

$10,600

Record property, plant, and equipment transactions; prepare partial balance sheet.

Top Answer

Refer to the attachment for the journal entries and their... View the full answer

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