Need help wugent.. Dont bid if you cant do it

Nov 28th, 2014
Business Finance
Price: $35 USD

Question description

Kathy Company purchased and installed a machine on January 1, 2006 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life, and no salvage value. The machine was disposed of on July 1, 2009.

  1. Prepare the general journal entry to update depreciation to July 1, 2009.
  2. Prepare the general journal entry to record the disposal of the machine under each of these three independent situations:
    1. The machine was sold for $22,000 cash.
    2. The machine was sold for $15,000 cash.
    3. The machine was totally destroyed in a fire and the insurance company settled the claim for $18,000 cash.
    4. Kevin Company had the following transactions involving plant assets during 2008 and 2009. Unless otherwise indicated, all transactions were for cash
    5. 2008:

      Jan 2: Purchases a truck for $50,000 plus sales taxes of $3,000. The Truck is expected to have a $4,000 salvage value and a 4 year life

      Jan 3: Paid $1,500 to have the company name and logo painted on the side of the truck. This will not add to the value of the Advertising Expense

      Dec 31: The Company recorded straight-line depreciation of the truck


      Jan 5: Paid $5,000 to put a bigger engine in the truck. The new engine is expected to make the truck run more efficiently and will increase the truck’s useful life by another year. The salvage value is the same.

      Mar 1: Kevin Company paid $2000 to replace a broken tailgate. The tailgate was damaged when a large and heavy box accidently dropped on it.

      Dec 31: Recorded Straight-Line Depreciation for a year on the truck.

      1. Please prepare the journal entries to record all of the transactions listed above.
      2. t 1 and Part 2 in the same Excel document. Each part should be on its own clearly labeled tab.

Tutor Answer

(Top Tutor) muhammadyousaf
School: Duke University

Studypool has helped 1,244,100 students

Review from student
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors