PROBLEM 16A-2
(a)
END OF
YEAR
COST OF
EQUIPMENT
YEARLY
DEPRECIATION
EXPENSE
ACCUMULATED
DEPRECIATION
END OF YEAR
BOOK VALUE
END OF YEAR
2014
$52,000
$7,000
$7,000
$45,000
2015
52,000
7,000
14,000
38,000
2016
52,000
7,000
21,000
31,000
2017
52,000
7,000
28,000
24,000
(b)
END OF
YEAR
COST OF
EQUIPMENT
YEARLY
DEPRECIATION
EXPENSE
ACCUMULATED
DEPRECIATION
END OF YEAR
BOOK VALUE
END OF YEAR
2014
$52,000
$5,200
$5,200
$46,800
2015
52,000
12,000
17,200
34,800
2016
52,000
7,200
24,400
27,600
2017
52,000
3,600
28,000
24,000
PROBLEM 16A-3
BOOK VALUE
END OF YEAR
$4,624
ACC. DEP.
END OF YEAR
$896
YEARLY DEPRECIATION
EXPENSE
$896
COST OF EQUIPMENT
$5,520
END OF
YEAR
2014
(a)
PROBLEM 16A-4
ROX CO. GENERAL JOURNAL
PAGE 3
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Jan.
1
Cash
1
1
0
0
00
Accumulated Depreciation, Truck
5
7
0
0
00
Truck
6
2
0
0
00
Gain on Sale of Plant Asset
6
0
0
00
$6,200
$1,100
5,700
500
BV
$ 500
$ 600
Gain
Feb.
10
Cash
2
5
0
00
Loss From Fire
4
0
0
00
Accumulated Depreciation, Machinery
2
4
5
0
00
Machinery
3
1
0
0
00
$
3,100
$650
BV
2,450
250
Ins.
BV
$
650
$400
Loss
May
1
Machinery (new)
25
0
0
0
00
Loss on Exchange of Machinery
3
5
0
00
Accumulated Depreciation, Machinery
13
5
0
0
00
Machinery (old)
16
5
5
0
00
Cash
22
3
0
0
00
$16,550
$3,050
BV
13,500
2,700
–Trade-In
BV
$ 3,050
$ 350
Loss
PROBLEM 16A-4 (CONCLUDED)
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Jul.
8
Machinery (new)
43
5
0
0
00
Accumulated Depreciation, Machinery
30
0
0
0
00
Machinery (old)
44
0
0
0
00
Cash
29
5
0
0
00
$44,000
–30,000
$ 14,000
BV
+29,500
Cash Paid
$43,500
Aug.
9
Machinery (new)
25
3
5
0
00
Accumulated Depreciation, Machinery
13
5
0
0
00
Machinery (old)
16
5
5
0
00
Cash
22
3
0
0
00
$16,550
–13,500
$ 3,050 BV
+22,300 Cash Paid
$25,350
Sept.
12
Accumulated Depreciation, Truck
7
0
0
0
00
Truck
7
0
0
0
00
Copyright © 2016 Pearson Education, Inc.
16–16
SOLUTIONS TO SET B PROBLEMS
PROBLEM 16B-1
GREEN COMPANY
GENERAL JOURNAL
PAGE 4
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Feb.
5
Land
94
0
0
0
00
Cash
94
0
0
0
00
18
Land Improvements
5
0
0
0
00
Cash
5
0
0
0
00
Mar.
24
Building
88
0
0
0
00
Cash
26
4
0
0
0
00
Mortgage Payable
61
6
0
0
00
29
Equipment
33
0
0
0
00
Cash
33
0
0
0
00
May
10
Building
175
0
0
0
00
Cash
175
0
0
0
00
June
15
Repairs Expense
7
0
0
00
Cash
7
0
0
00
July
1
Truck
14
5
0
0
00
Cash
14
5
0
0
00
Oct.
15
Truck
2
5
0
0
00
Cash
2
5
0
0
00
Nov.
30
Repairs Expense
3
4
00
Cash
3
4
00
Dec.
30
Accumulated Depreciation, Truck
7
0
0
00
Cash
7
0
0
00
Dec.
31
Repairs Expense
2
7
5
00
Cash
2
7
5
00