Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Presented here are selected transactions for Pharoah Limited for 2021. Pharoah uses straight-line depreciation and records adjusting entries annually. Jan. 1 Sold a delivery truck
Presented here are selected transactions for Pharoah Limited for 2021. Pharoah uses straight-line depreciation and records adjusting entries annually. Jan. 1 Sold a delivery truck for $18,910 cash. The truck cost $67,900 when it was purchased on January 1, 2018, and was depreciated based on a four-year useful life with a $6,080 residual value. Sept. 1 Sold computers that were purchased on January 1, 2019. They cost $11,754 and had a useful life of three years with no residual value. The computers were sold for $470 cash. Dec. 30 Retired equipment that was purchased on January 1, 2012. The equipment cost $135,800 and had a useful life of 10 years with no residual value. No proceeds were received. (a) Your answer is partially correct. Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 18,910 Date Account Titles and Explanation Debit Credit Jan. 1 Cash 18,910 Accumulated Depreciation - Vehicles 46365 Loss on Disposal 2625 Vehicles 67,900 Sept. 1 Depletion Expense 2612 Accumulated Depreciation - Equipment 2612 (To record depreciation expense) 1 Cash 860 Accumulated Depreciation - Equipment 10384 Loss on Disposal 100 DUP 838 Equipment 12082 (To record the sale of equipment for cash) 1 Cash 860 Accumulated Depreciation - Equipment 10384 noen Loss on Disposal 838 Equipment 12082 (To record the sale of equipment for cash) c. 30 Depletion Expense 135,80 Accumulated Depreciation - Equipment 135,80 (To record depreciation expense) 30 Accumulated Depreciation - Equipment 135,800 Equipment 135,800 (To record the retirement of equipment)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started