Here are selected 2027 transactions of Swifty Corporation. Jan. 1 June 30 Dec. 31 Jan. 1 Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where applicable. Swifty Corporation uses straight-line depreciation. June 30 Retired a piece of machinery that was purchased on January 1, 2017. The machine cost $61,300 and had a useful life of 10 years with no salvage value. • Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses. • Increases in expenses and losses require a negative sign or parentheses. • Increases in Accumulated Depreciation require a negative sign or parentheses. Decreases in Accumulated Depreciation are entered as postive amounts. Dec. 31 Sold a computer that was purchased on January 1, 2025. The computer cost $35,200 and had a useful life of 4 years with no salvage value. The computer was sold for $5,700 cash. $ Sold a delivery truck for $9,500 cash. The truck cost $23,000 when it was purchased on January 1, 2024, and was depreciated based on a 5-year useful life with a $4,000 salvage value. $ Cash Common Stock $ Assets Equipment Revenue Stockholders' Equity $ $ Accum. Depr. - Equip. Retained Earnings Expense $ Liabilities Dividend $
Here are selected 2027 transactions of Swifty Corporation. Jan. 1 June 30 Dec. 31 Jan. 1 Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where applicable. Swifty Corporation uses straight-line depreciation. June 30 Retired a piece of machinery that was purchased on January 1, 2017. The machine cost $61,300 and had a useful life of 10 years with no salvage value. • Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses. • Increases in expenses and losses require a negative sign or parentheses. • Increases in Accumulated Depreciation require a negative sign or parentheses. Decreases in Accumulated Depreciation are entered as postive amounts. Dec. 31 Sold a computer that was purchased on January 1, 2025. The computer cost $35,200 and had a useful life of 4 years with no salvage value. The computer was sold for $5,700 cash. $ Sold a delivery truck for $9,500 cash. The truck cost $23,000 when it was purchased on January 1, 2024, and was depreciated based on a 5-year useful life with a $4,000 salvage value. $ Cash Common Stock $ Assets Equipment Revenue Stockholders' Equity $ $ Accum. Depr. - Equip. Retained Earnings Expense $ Liabilities Dividend $
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 22E
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Here are selected 2027 transactions of Swifty Corporation.
Jan. 1
June
30
Dec.
31
Jan. 1
Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where
applicable. Swifty Corporation uses straight-line depreciation.
June 30
Retired a piece of machinery that was purchased on January 1, 2017. The machine cost $61,300 and had a useful life
of 10 years with no salvage value.
Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses.
Increases in expenses and losses require a negative sign or parentheses.
Increases in Accumulated Depreciation require a negative sign or parentheses.
Decreases in Accumulated Depreciation are entered as postive amounts.
Dec. 31
Sold a computer that was purchased on January 1, 2025. The computer cost $35,200 and had a useful life of 4 years with
no salvage value. The computer was sold for $5,700 cash.
$
Sold a delivery truck for $9,500 cash. The truck cost $23,000 when it was purchased on January 1, 2024, and was
depreciated based on a 5-year useful life with a $4,000 salvage value.
$
Cash
Common Stock
$
Assets
Equipment
Revenue
Stockholders' Equity
$
Accum. Depr. - Equip.
MI
Retained Earnings
Expense
Liabilities
Dividend
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