Question : 242.A truck that cost $29,600 and which $21,600 of accumulated : 1244504

 

242.A truck that cost $29,600 and on which $21,600 of accumulated depreciation had been recorded was disposed of on September 1, the first day of the new fiscal year. Prepare entries in journal form to record the disposal under each of the following assumptions:

 

a. It was discarded as having no value.

b. It was sold for $6,000 cash.

c. It was sold for $11,200 cash.

 

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243.Leroy Mining Company purchased land containing an estimated 10,000,000 tons of ore for a cost of $750,000. The land without the ore is estimated to be worth $150,000 (the residual value). Buildings costing $45,000 with an estimated useful life of 20 years were erected on the site. Because of the remote location, the buildings have no residual value. The company expects that all the usable ore can be mined in eight years. During its first year of operation, the company mined 1,000,000 tons of ore and at the end of the year had an inventory of 200,000 tons. Determine the following amounts for the first year: (a) depletion charge per ton; (b) depletion expense for year; and (c) depreciation expense for buildings, using the straight-line method. (Show your work.)

 

 

244.Bob Jefferson obtained a ten-year sublease on a busy corner to open a used car business. To obtain the sublease, he had to pay $7,000 to the current tenant, who had 12 years to go on his lease. The annual cost of the lease is $9,000. In addition to paying for the sublease, Bob paid $5,000 to pave the lot. The paving will have no residual value after its useful life of ten years. Prepare entries in journal form to record the following (omit explanations):

 

a. The payment for the sublease

b. The payment for the paving

c. The lease payment for the first year

d. The expense, if any, associated with the sublease for the first year

e. The expense, if any, associated with the paving, using the straight-line method for the first year

 

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