Presented Below Are Selected Transactions for Werley Company for 2018

question 68

Essay

Presented below are selected transactions for Werley Company for 2018.
Jan. 1 Received $9,000 scrap value on retirement of machinery that was purchased on January 1, 2008. The machine cost $90,000 on that date, and had a useful life of 10 years with no salvage value.
April 30 Sold equipment for $34,000 that was purchased on January 1, 2015. The equipment cost $90,000, and had a useful life of 5 years with no salvage value.
Dec. 31 Discarded a business automobile that was purchased on April 1, 2014. The car cost $27,000 and was depreciated on a 5-year useful life with a salvage value of $2,000.
Instructions
Journalize all entries required as a result of the above transactions. Werley Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2017.

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Definitions:

Nonparticipating

Typically refers to insurance policies or investment plans where the holder does not share in profits or dividends beyond specified benefits.

Par Value

The nominal or face value assigned to a share of stock or a bond by the issuer.

Noncumulative

A type of preferred stock on which dividend payments are not accumulated if they are not declared.

Nonparticipating

In the context of financial securities, refers to preferred shares or other financial instruments that do not have the right to share in the corporation's earnings beyond a certain amount.