Reference no: EM132508755

Question - Journalize the transactions for the Round Company for 201X and show all calculations:

Jan. 1 Sold a truck for $1,300 that cost $6,700 and had accumulated depreciation of $6,000.

Feb 10 A machine costing $3,100 with accumulated depreciation of $2,150 was destroyed in a fire. The insurance company settled the claim for $450.

May 1 Traded in a machine costing $18,000 with $14,500 of accumulated depreciation for a new machine costing $25,100 with a trade-in allowance of $3,000. Note that depreciation is up-to-date. The loss is to be recognized.

July 8 Traded in a machine costing $46,000 with $34,000 of accumulated depreciation (which is up-to-date) for a new machine for a cash price of $47,000 and a trade-in allowance of $15,000.

Aug. 9 Journalize the May 1 transaction using the income tax method.

Sept. 12 A truck costing $7,500 and fully depreciated was disposed of.