Here are selected transactions for Andre Corporation for 2007.

Jan. 1. Retired a piece of machinery that was purchased on January 1, 1997.

The machine cost $52,000 and had a useful life of 10 years with no salvage value.

Problems: Set B 463 Land $277,400 Journalize equipment transactions related to purchase, sale, retirement, and depreciation.

(SO 5, 8)

(c) Tot. plant assets

$60,537,500 Journalize entries for disposal of plant assets.

(SO 5)

464 CHAPTER 9_ Reporting and Analyzing Long-Lived Assets Prepare entries to record transactions related to acquisition and amortization of intangibles; prepare the intangible assets section and notes.

(SO 7, 8)

(c) Tot. intangibles $262,900 Prepare entries to correct errors in recording and amortizing intangible assets.

(SO 7)

Calculate and comment on return on assets, profit margin, and asset turnover ratio.

(SO 6)

CEES June 30 Sold a computer that was purchased on January 1, 2004. The computer cost $35,000 and had a useful life of 7 years with no salvage value. The computer was sold for $23,000.

Dec. 31. Discarded a delivery truck that was purchased on January 1, 2003. The truck cost $30,000 and 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 on assets disposed of, where applicable. Andre Corporation uses straight-line depreciation.