Presented Below Are Selected Transactions for Werley Company for 2017

question 251

Essay

Presented below are selected transactions for Werley Company for 2017.
Jan. 1 Received $9000 scrap value on retirement of machinery that was purchased on January 1 2007. The machine cost $90000 on that date and had a useful life of 10 years with no salvage value.
April 30 Sold equipment for $34000 that was purchased on January 1 2014. The equipment cost $90000 and had a useful life of 5 years with no salvage value.
Dec. 31 Discarded a business automobile that was purchased on April 1 2013. The car cost $27000 and was depreciated on a 5-year useful life with a salvage value of $2000.
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 2016.

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Definitions:

Growth Stage

A phase in the product life cycle characterized by rapid market acceptance and increasing profits.

Introductory Stage

The introductory stage is the initial phase of a product lifecycle, characterized by product launch, market entry, and initial promotion efforts.

Product Line

A group of related products marketed by a company, which usually function in a similar manner or are sold to the same customer segment.

Product Mix

The total variety of products that a company produces or sells, encompassing different lines, items, and variations offered to the market.