Presented below are selected transactions at Beck Company for 1996. Jan. 1 Retired a piece of machinery
Question:
Presented below are selected transactions at Beck Company for 1996.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 1986. The machine cost \(\$ 62,000\) 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, 1993. The computer cost \(\$ 35,000\), and had a useful life of 7 years with no salvage value. The computer was sold for \(\$ 28,000\).
Dec. 31 Discarded a delivery truck that was purchased on January 1, 1990. The truck cost \(\$ 27,000\) and was depreciated based on an 8 -year useful life with a \(\$ 3,000\) salvage value.
\section*{Instructions}
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Beck Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 1995.)
Step by Step Answer:
Financial Accounting
ISBN: 9780471169208
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso