Nama : Winda Gokma Fransiska Purba

NIM : 4112311090
Kelas : AM 2C Malam

E9.12 (LO 3) Presented below are selected transactions at Ingles Company for 2020
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost £58
on that date. It had a useful life of 10 years with no residual value
June. 30 Sold a computer that was purchased on January 1, 2017. The computer was sold for £40.00
a useful life of 5 years with no residual value. The computer was sold for £14.600
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost £34.000.
It was depreciated based on a 6 year useful life with a £4.000 residual value.

Instructions
Journalize all entries required on the above dates, including entries to update depreciation, where applica
on assets disposed of, Ingles Company uses straight-line depreciation. (Assume depreciation is up to
date as of December 31, 2019.)

JOURNAL ENTRY
INGLES COMPANY
DATE ACCOUNT NAME DEBIT
Accumulated Depreciation - Machinery 58,000
Machinery
1-Jan
to record retired piece of machinery

Depreciation Expense 4,000

(40.000/5) x 6 / 12 month
Accumulated Depreciation - machinery
to record depreciation

Accumulated depreciation - computer 28,000

30-Jun

cash 14,600
Gain on sale computer (bal)
computer
to record sale of computer

Depreciation expense 5,000

(34.000-4000)/6 year
Accumulated depreciation - truck
to record depreciation

31-Dec
Accumulated depreciation - truck 25,000
31-Dec

(5000*4)+5000
Loss on Sales (bal) 9,000
Truck
to record discarded of truck
TOTAL 143,600
. The machine cost £58.000

ter was sold for £40.000. It had

for £14.600
he truck cost £34.000.

eciation, where applicable,

preciation is up to

CREDIT

58,000

4,000

2,600
40,000

5,000
 34,000

143,600
Nama : Winda Gokma Fransiska Purba
NIM : 4112311090
Kelas : AM 2C Malam

E9.14 (LO 4) On July 1, 2020. Ticino AG invested CHF736.000 in a mine estimated to have 800.000
tons of ore of uniform grade. During the last 6 months of 2020, 124.000 tons of ore were m

Instructions
a. Prepare the journal entry to record depletion.
b. Assume that the 124.000 tons of ore were mined, but only 90.000 units were sold. How are the cost
applicable to the 34.000 unsold units reported?

a. JOURNAL ENTRY
RECORD DEPLETION EXPENSE
DATE ACCOUNT NAME DEBIT
31-Dec Inventory (ore) 114,080
Accumulated Depletion
(124.000 x (736.000/800.000))
TOTAL 114,080

b. cost per tons = 736.000 / 800.000

0.92
the cost for the unsold units are reported in current assets as part of inventory
34.000 x 0,92 = 31,280

cost of unit sold = 90.000 - 31.280

58,720
d to have 800.000
4.000 tons of ore were mined.

sold. How are the cost

CREDIT

114,080

114,080

of inventory
Nama : Winda Gokma Fransiska Purba
NIM : 4112311090
Kelas : AM 2C Malam

E9.15 (LO 6) The following are selected 2020 transactions of Yosuke Ltd.
Jan. 1 Purchased a small company and recorded goodwill of €150.000. Its useful life is indefinite.
May. 1 Purchased for €84.000 a patent with an estimated useful life of 5 years and a legal life of 20

Instructions
Prepare necessary adjusting entries at December 31 to record amortization required by the events above

TO RECORD PATENT AMORTIZATION FOR 8 MONTHS

DATE ACCOUNT NAME DEBIT
31-Dec Amortization Expense 11,200
(84000/5) * 8/12
Patents
TOTAL 11,200

Shorter of legal life and estimated useful life = 5 years

Purchase cost / Useful life = 84000 / 5= € 16,800
Amortization Expense from May to Dec 2020 = 16,800 * 8/12 = € 11,200
 Its useful life is indefinite.
5 years and a legal life of 20 years.

quired by the events above.

MONTHS
CREDIT

11,200
11,200
Nama : Winda Gokma Fransiska Purba
NIM : 4112311090
Kelas : AM 2C Malam

E9.18 (LO 6) Presented below are two independent transactions. Both transactions have commercial su
1. Global Co, exchanged old trucks (cost £64.000 less £22.000 accumulated depreciation) plus cash of £17
for new trucks. The old trucks had a fair value of £37.400.
2. Rijo Ltd. Trades its used machine (cost £12.000 less £4.000 accumulated depreciation) for a new
machine. In addition to exchanging the old machine (which had a fair value of £9.000), Rijo also
paid cash of £3.200.

Instructions
a. Prepare the entry to record the exchange of assets by Global Co
b. Prepare the entry to record the exchange of assets by Rijo Ltd.

a. JOURNAL ENTRY
RECORD DEPLETION EXPENSE
ACCOUNT NAME DEBIT
New Truck (37,400+17,000) 54,400
Depretiation Expense 22,000
Loss of Exchange of truck 4,600
(64,000+17000-54,400-22,000)
Old Truck
Cash
TOTAL 81,000

b. JOURNAL ENTRY
RECORD DEPLETION EXPENSE
ACCOUNT NAME DEBIT
new machine (9000+3200) 12,200
Depreciation Expense 4,000
old machine
cash
Gain of exchange of machine (12.200+4000-12.000-3200)
TOTAL 16,200
ns have commercial subtance.
ation) plus cash of £17.000

ation) for a new

00), Rijo also

CREDIT

64,000
17,000
81,000

CREDIT

12,000
3,200
1,000
16,200
Nama : Winda Gokma Fransiska Purba
NIM : 4112311090
Kelas : AM 2C Malam

E9.19 (LO6) Jay's Delivery Company and Astro's Express Delivery exchanged delivery trucks on
January 1, 2020. Jay's truck cost €22.000. It has accumulated depreciation of €16.000 and a
of €4.000. Astro's truck cost €10.000. It has accumulated depreciation of €7.000 and a fair v
€4.000. The transaction has commercial substance.

Instructions
a. Journalize the exchange for Jay's Delivery Company.
b. Journalize the exchange for Astro's Express Delivery.

a. JOURNAL ENTRY
Jay's delivery company
DATE ACCOUNT NAME
Equipment (new)
Accumulated Depreciation—Truck
1-Jan-20
Loss on Disposal of Truck
Equipment (old)
TOTAL

Jay'sDelivery Company
Cost of used trucks 22,000
Less: Accumulated depreciation 16,000
Book value 6,000
Fair market value of used trucks 4,000
Loss (2,000)

b. JOURNAL ENTRY
Astro's Express Delivery
DATE ACCOUNT NAME
1-Jan-20 Equipment (new)
Accumulated Depreciation—Truck
Gain on Disposal of Truck
Equipment (old)
TOTAL

Astro's Express Delivery

Cost of used trucks 10,000
Less: Accumulated depreciation 7,000
Book value 3,000
Fair market value of used trucks 4,000
Gain 1,000
very trucks on
iation of €16.000 and a fair value
on of €7.000 and a fair value of

DEBIT CREDIT
4,000
16,000
2,000
22,000
22,000 22,000

DEBIT CREDIT
4,000
7,000
1,000
10,000
11,000 11,000