1) Manatee Inc. began its' operation on January 1, 2012. During 2019 the business was engaged in the following selected transactions: June 1 Sold equipment that cost $78,000 when purchased on January 1, 2015. The equipment was sold for $40,000. The equipment is estimated to have a 10-year useful life and no salvage value. Dec 31 Retired equipment that cost $72,000 when purchased on December 31, 2012. The company received no procceds related to salvage. The equipment is estimated have a 8-year useful life and no salvage value. Dec 31 Yearly Depreciation was recorded on a delivery truck that was purchased at a cost of $28,000 on July 01, 2018. This truck has a lifetime of 5 years and a salvage value of $4,000, Manatee Inc uses units of activity method for this truck. Total miles are expected to be 120,000. Actual miles of use in 2018 and 2019 were 12,000 and 25,000 respectively. Instruction: Journalize the transactions.

1) Manatee Inc. began its' operation on January 1, 2012. During 2019 the business was engaged in the following selected transactions: June 1 Sold equipment that cost $78,000 when purchased on January 1, 2015. The equipment was sold for $40,000. The equipment is estimated to have a 10-year useful life and no salvage value. Dec 31 Retired equipment that cost $72,000 when purchased on December 31, 2012. The company received no procceds related to salvage. The equipment is estimated have a 8-year useful life and no salvage value. Dec 31 Yearly Depreciation was recorded on a delivery truck that was purchased at a cost of $28,000 on July 01, 2018. This truck has a lifetime of 5 years and a salvage value of $4,000, Manatee Inc uses units of activity method for this truck. Total miles are expected to be 120,000. Actual miles of use in 2018 and 2019 were 12,000 and 25,000 respectively. Instruction: Journalize the transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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