Sun Industries adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment, and uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2009, the company purchased a machine costing $97,000. The machine's useful life was estimated to be 12 years with a residual value of $18,400. Depreciation for partial years is recorded to the nearest full month. In 2013, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2013 a. Prepare journal entries in chronological order for the above events, beginning with the purchase of the machinery on January 11, 2009. Show separately the recording of depreciation expense in 2009 through 2013. (Do not round intermediate calculations. Omit the "S" sign in your response.) General Journal Date 2009 Jan. 11 Debit Credit (Click to select) (Click to select) Dec. 31 (Click to select) (Click to select) 2010- 2012 Dec. 31 (Olick to select) (Click to select) 2013 Dec. 31 (Click to select) (Click to select) Reformas wry D. Lanu, pov, VUU; Building, $5,500,000; Accumulated Depreciation: Building (at the date of disposal), $2,500,000. Aug. 15 Hong traded in an old truck for a new one. The old truck had cost $260,000, and its accumulated depreciation amounted to $180,000. The list price of the new truck was $390,000, but Hong received a $100,000 trade-in allowance for the old truck and paid only $290,000 in cash. Hong includes trucks in its Vehicles account. Oct. 1 Hong traded in its old computer system as part of the purchase of a new system. The old system had cost $150,000, and its accumulated depreciation amounted to $110,000. The new computer's list price was $80,000. Hong accepted a trade-in allowance of $5,000 for the old computer system, paying $15,000 down in cash and issuing a one-year, 8 percent note payable for the $60,000 balance owed. a. Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (Omit the "S" sign in your response.) Date Feb. 10 Cre: General Journal Loss on disposal of plant assets Accumulated depreciation: Office equipment Office equipment Debit 2,000 258,000 260 Apr. 1 Cash Notes receivable 1,000,000 800,000 2,500,000 Accumulated depreciation: Building Accumulated depreciation: Building Land 2,500,000 Building 0 Gain on sale of plant assets 500,000 5,500,000 5,500,000 Aug. 15 Cash (Click to select) (Click to select) (Click to select) (Click to select) Oct. 1 Office equipment (old computer) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) OOOOOO References