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Answer to the question no 1

Analysis of the effect of each of the given transactions on property, plant,


equipment accounts and other related accounts along with the necessary
journal entries are given below:
1. As one of the factory machine was sold on January 2,1988 at its book
value $3,866 and the sale was recorded as $31,233 along with the
accumulated depreciation $27,367; the following journals would be
appropriate
Dr. Cash
$3,866
Dr. Accumulated Depreciation-factory machine

$27,367

Cr. Factory Machine

$31,233
2.

As at the end of the year 1988,tool inventory decreased by


$7,850, the required
journals are as follows
Dr.

Cash
Cr. Tool inventory

$7,850
$ 7,850

3. They sold the automobile in March 1, 1998, so we have to computed


for the two months and then we have to journalize the entry. Because of this
transaction cash will increase by 2336,loss on sale will be 559.5,accumulated
dep. Will decrease by 5458.5 and automobile will decrease by 8354.
Dr. Depreciation Expense (actual life)

$278.5

Cr. Accumulated Depreciation


Dr. Cash

$2336

Dr. Loss on sale

$559.5

$278.5

Dr. Accumulated Depreciation (automobile) $5458.5


Cr. Automobile

$8354

4. Amortization expense and accumulated amortization will increase by


9926.5
Dr. Amortization Expense

$9926.5

Cr. Accumulated amortization

$9926.5

5. Because of this transaction cash will increase by 75 and rain sale will be
75 and we have to deduct accumulated depreciation(office) and office
machine by 1027.
Dr. Cash

$75

Dr. Accumulated Depreciation (office) $1027


Cr. Gain on disposal (typewriter)
Cr. Office machine

$75
$1027

6. First we have to calculate Depreciation of the furniture for 9 months and


this transaction will increase cash by 80 and gain on disposal will be
21.75,both accumulated depreciation and furniture will decrease by 431.75
and 490.
Dr. Dep. Expense (furniture)

$36.75

Cr. Accumulated Depreciation (furniture) $36.75


Dr. Cash

$80

Dr. accumulated Dep. (furniture)

$431.75

Cr. Furniture

$490

Cr. Gain on disposal

$21.75

7. Depreciation for the year for building, factory machine, furniture and
fixtures, automobile equipment, office machine will be as follows:
Dr. Depreciation Exp- building

$48105.18

Cr. Accumulated depreciation (building) $48105.18

Dr. Dep. Exp- factory machine

$33095.2

Cr. Accumulated depreciation (factory machine)


Dr. Depreciation Exp- furtinure&fixtures $5599.4
Cr. Accumulated dep.(furniture fixtures)
Dr. Dep. Exp- automobile equipment

$5599.4
$9988.8

Cr. Accu. Dep.-automobile equipment


Dr. Dep. Exp-office machine
Cr. Acc. Dep.-office machine

$9988.8

$4150.7
$4150.7

$33095.2

Answer to the question no.2

Land
Building
Less. Accumulated Depreciation-Building
16,937,74.82

Factory machinery
Less. Accumulated Depreciation-factory machinery
14,484,25.8

Furniture &fixtures
Less. Accumulated Depreciation-Furniture &fixture
10,389.6

Automobile Equipment
Less. Accumulated depreciation-automobile equip.
7,979.2

Office machines
Less. Acc.Depreciation office machine
10378.3

186,563
2,405,259
(7,114,84.18)

33,943,52
(1945926.2)

55,994
(4,560.44)

49,944
(41,964.8)

41,507
(31128.7)

Total (Building, Factory machine, Furniture&fixtes,


Automobile equipment, and office machine)

3357510.72

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