Presented here are selected transactions for Riley Company for 2007. (SO 5) Jan. 1 Retired a piece
Question:
Presented here are selected transactions for Riley Company for 2007.
(SO 5) Jan. 1 Retired a piece of machinery that was purchased on January 1, 1997. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2004. The computer cost $32,000 and had a useful life of 5 years with no salvage value. The computer was sold for $10,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2002. The truck cost $27,000 and was depreciated based on an 8-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. Riley Company uses straight-line depreciation.
(Assume depreciation is up to date as of December 31, 2006.)
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471730514
4th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso