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:

Positive Terminal

The electrode in an electrical device from which current flows away, typically marked with a positive sign and higher potential energy.

Anode

The positive terminal of an electric device.

Magnesium Atom

The atomic form of magnesium, a light, silvery-white, moderately hard metallic element that is an essential nutrient for living cells.

Metallic Salt

Chemical compounds consisting of metal cations and non-metal anions, often soluble in water and can conduct electricity when molten or dissolved.