Entry on Acquisition

July 1, 2016 Machinery and Equipment

Cash

Aug. 30, 2016 Automobile and trucks

Cash
1
Solution
Accumulated Depreciation- 12/31/12 (48,000 -
Depreciation- 9 months (30,000 x 30% x 9/12)

Cash
Accumulated Depreciation

Cost
Gain on Sale

Entry
Sep. 30, 2016 Cash
Accumulated Depreciation
Automobile and trucks
Gain on Sale
2Solution
 Machine
CV
Accumulated Depreciation
Cash

Machine
Gain on Sale

Entry
Dec. 30, 2016 Cash
Accumulated Depreciation
Machinery and Equipment
Gain on Sale
3Solution
Machine and Equipment
Automobiles and trucks
Leasehold Improvement
Unadjusted PPE (Dec. 31, 2015)
Machine and Equipment (July 1)
Automobiles (Aug. 30)
Truck (Sep. 30)
Machine (Dec. 30)
Adjusted PPE (Dec. 31, 2016)

4Solution
 Machine and Equipment- Beg bal.
Machine Sold 12/30/2016
Acquired 7/1/2016

Automobile and Trucks - Beg bal.

Truck Sold 9/30/2016
Acquired 8/30/2016

Leasehold Improvement

Total Depreciation Expense (Dec. 31,2016)

5Solution
Adjusted PPE (Dec. 31, 2016)
Machinery and equipment - Acc. Dep.
Automobiles and trucks - Acc. Dep.
Leasehold improvements - Acc. Dep.
Total Accumulated Depreciation

Depreciation Expense (Dec. 31,2016)

5Solution
Machinery and equipment
 12/31/2015 balance
7/1/2016 purchase
12/30/2016 sold

Automobiles and trucks

12/31/2015
8/30/2016 purchse
9/30/2016 sold

Leasehold Improvement
PPE 12/31/2016
Accumulated Depreciation 12/31/20
Less: 12/30/2016 sale
9/30/2016 sale
Add: Depreciation Expense
 369,000.00
369,000.00

25,000.00
25,000.00

2/31/12 (48,000 - 30,0000) 18,000.00

00 x 30% x 9/12) 6,750.00
24,750.00

23,500.00
24,750.00
48,250.00
48,000.00
250.00

23,500.00
24,750.00
48,000.00
250.00
 17,000.00
-2,975.00
14,025.00
4,000.00
18,025.00
-17,000.00
1,025.00d

4,000.00
14,025.00
17,000.00
1,025.00

1,380,000.00
210,000.00
432,000.00
2,022,000.00
369,000.00
25,000.00
-48,000.00
-17,000.00
2,351,000.00b
 1,380,000-17,000*10% 136,000.00
17,000*10% 1,700.00
(325,000+44,000)*10%*6/12 18,450.00

65,680*30% 19,704.00
30,000*30%*9/12 6,750.00
25,000*30%*4/12 2,500.00

432,000/12

ec. 31,2016)

cc. Dep. 367,500.00

114,320.00
c. Dep. 108,000.00

1,2016)
1,380,000.00
369,000.00
-17,000.00
1,732,000.00

210,000.00
25,000.00
-48,000.00
187,000.00
432,000.00
2,351,000.00
589,820.00
-14,025.00
-24,750.00
221,404.00
772,449.00
1,578,551.00
b
 156,150.00

28,954.00

36,000.00

221,104.00c

2,351,000.00

589,820.00
1,761,180.00
221,404.00
1,539,776.00