Presented Below Are Selected Transactions for Corbin Company for 2014

question 172

Essay

Presented below are selected transactions for Corbin Company for 2014.
Jan. 1 Received $3,000 scrap value on retirement of machinery that was purchased on January 1, 2003. The machine cost $90,000 on that date, and had a useful life of 10 years with no residual value.
April 30 Sold a machine for $31,000 that was purchased on January 1, 2011. The machine cost $90,000, and had a useful life of 5 years with no residual value.
Dec. 31 Discarded a business automobile that was purchased on April 1, 2010. The car cost $42,000 and was depreciated on a 5-year useful life with a residual value of $2,000.
Instructions
Journalize all entries required as a result of the above transactions. Corbin Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2013.

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Definitions:

Financing Activities

Transactions that involve raising funds for the company through debt, equity, or other financial means.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, part of the cash flow statement.

Indirect Method

A technique used in financial accounting to calculate cash flows from operations by adjusting net income for non-cash transactions.

Operating Activities

The primary, day-to-day activities of a business that relate to its production, sales, and delivery of goods and services.