Accounting for Long-Term Assets Company B is its business. Instructions: Record
ID: 2569125 • Letter: A
Question
Accounting for Long-Term Assets Company B is its business. Instructions: Record each of the following equipment transactions for 2017 a calendar-year corporation that purchases and sales equipment for use in May 9: Company B sold a concrete truck for $3,400. The original cost of the concrete truck was $7.000, with accumulated depreciation of $4,300 at the time of the sale. Record the sale of the concrete truck for cash Date a. Account Titles Debit Credit July 13: Company B purchased a new fork lift for $11,000 plus sales tax of $3,300 he company signed a note for $5,000 and paid the remaining balanced owed for the equipment in cash. Record the purchase of the new fork lift Date Debit Credit Account Titles July 13: Company B sold a cable reel trailer that originally cost $5.750, with accumulated depreciation of $2.300 at the time of the sale. Record the sale of the cable reel trailer for $3,350 cash. Date c. Debit Credit Account Titles December 31: Company B uses the straight-line depreciation method to calculate its depreciation expense on its equipment. For 2017 depreciation expense was $24,750 Date d. Record depreciation expense Credit Debit Account TitlesExplanation / Answer
a. Date Account Title Debit Credit 9-May-17 Cash 3,400 Accumulated Depreciation 4,300 Concrete Truck (Fixed Assets) 7,000 Gain on Sale of Concrete Truck (Bal. Fig.) 700 b. Date Account Title Debit Credit 13-Jul-17 Forklift (Fixed Assets) 11,000 Sales Tax Receivable 3,300 Notes Payable 5,000 Vendor Payable 9,300 Assumed: input Sales tax can be set off against output sales tax and hence not capitalised c. Date Account Title Debit Credit 13-Jul-17 Cash 3,350 Accumulated Depreciation 2,300 Loss on Sale of Cable Reel (Bal. Fig) 100 Cable Reel (Fixed Assets) 5,750 d. Date Account Title Debit Credit 31-Dec-17 Depreciation 24,750 Accumulated Depreciation 24,750