Accounting Problems

Journal Entries for Thomas Company for 2006

Jan 1 (i ) Debit : Machinery disposal account 62000

Credit : Machinery account 62000 (Being the cost of machinery retired (ii ) Debit : Profit and loss account 6200

Credit : Provision for depreciation account 6200 (To recognize the depreciation provision for 2006 for the sold machinery

June 30 (i ) Debit : Computer disposal account 35000

Credit : Computer account 3500 (Being the cost of computer sold (ii ) Debit : Provision for depreciation account 7000

Credit : Computer Disposal account 7000 (To eliminate the portion of amortization of the computer for the year from

p the books of account (iii ) Debit : Bank account 12000

Credit : Computer Disposal account 12000 (To recognize the sale proceeds from the computer (iv ) Debit : Profit and loss account 16 ,000

Credit : Computer Disposal account 16 ,000 (To recognize the loss as a result of the disposal / sale

December 31 (i ) Debit : Truck disposal account 33 ,000

Credit : Truck account 33 ,000 (Being the cost of the truck discarded (ii ) Debit : Truck provision for depreciation account 5 ,000

Credit : Truck Disposal account 5 ,000 (Being the depreciation portion of 2006 of the truck

2006 adjusting Entries for Amortization for Yosuke Corporation

Jan 1

The goodwill will not be amortized since the useful life of the purchased company is indefinite

May 1

We use the useful life of 5 years

Amortization 60 ,000 12 ,000

5

For each year starting May 1 2006

Debit : Profit and loss account 12 ,000

Credit : amortization account 12 ,000 (to recognize the amortization of the patent

REFERENCE

Bragg Steve Accounting Best Practices Wiley , 2003...