PROBLEM 16B-2
(a)
END OF
YEAR
COST OF
EQUIPMENT
YEARLY DEP.
EXPENSE
ACC. DEP.
END OF YEAR
BOOK VALUE
END OF YEAR
2014
$58,000
$10,500
$10,500
$47,500
2015
$58,000
$10,500
21,000
37,000
2016
$58,000
$10,500
31,500
26,500
2017
$58,000
$10,500
42,000
16,000
(b)
END OF
YEAR
COST OF
EQUIPMENT
UNITS
PRODUCED
YEARLY
DEPRECIATION
EXPENSE
ACCUMULATED
DEPRECIATION
END OF YEAR
BOOK VALUE
END OF YEAR
2014
$58,000
24,000
$6,000
$6,000
$52,000
2015
$58,000
34,000
8,500
14,500
43,500
2016
$58,000
27,000
6,750
21,250
36,750
2017
$58,000
83,000
20,750
42,000
16,000
PROBLEM 16B-3
BOOK VALUE END
OF YEAR
$4,662
3,426
2,190
ACC. DEP.
END OF YEAR
$618
1,854
3,090
ANNUAL DEPRECIATION
EXPENSE
$618
1,236
1,236
COST OF EQUIPMENT
$5,280
5,280
5,280
(a)
END OF
YEAR
2014
2015
2016
PROBLEM 16B-4
ROBE COMPANY
GENERAL JOURNAL
PAGE 3
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Jan.
1
Cash
1
3
5
0
00
Accumulated Depreciation, Truck
5
9
0
0
00
Truck
6
6
5
0
00
Gain On Sale Of Plant Asset
6
0
0
00
$6,650
$1,350
Cash Rec
5,900
750
BV
BV
750
$600
Gain
Feb.
10
Cash
3
0
0
00
Loss From Fire
5
5
0
00
Accumulated Depreciation, Machinery
1
9
5
0
00
Machinery
2
8
0
0
00
$2,800
$850
BV
1,950
300
Ins. Pmt.
BV
$850
$550
Loss
May
1
Machinery (new)
24
3
0
0
00
Loss On Exchange Of Machinery
2
5
0
00
Accumulated Depreciation, Machinery
15
5
0
0
00
Machinery
18
1
5
0
00
Cash
21
9
0
0
00
$18,150
$2,650
BV
–15,500
–2,400
Trade-in
BV
$ 2,650
$ 250
Loss
PROBLEM 16B-4 (CONCLUDED)
Date
20XX
Account Titles and Description
PR
Dr.
Cr.
July
8
Machinery (new)
49
0
0
0
00
Accumulated Depreciation, Machinery
30
0
0
0
00
Machinery (old)
47
0
0
0
00
Cash
32
0
0
0
00
$47,000
– 30,000
$17,000 BV
+32,000 Cash Paid
49,000
Aug.
9
Machinery (new)
24
5
5
0
00
Accumulated Depreciation, Machinery
15
5
0
0
00
Machinery (old)
18
1
5
0
00
Cash
21
9
0
0
00
$18,150
– 15,500
$2,650
BV
BV
+21,900 Cash Paid
24,550
Sept.
12
Accumulated Depreciation, Truck
5
5
0
0
00
Truck
5
5
0
0
00