8 Net

Bookproceeds
Value of Machine No. 16,000
6
Cost 60,000
Less: Accumulated
Deprecation
Loss on Sale of Machine 42,000 18,000
No. 6 2,000

9 Balance 1/1/2020 892,000

Machine No.12 purchased 77,000
Machine No.6 sold (60,000)
Balance 12/31/2020 903,000

10 Depreciation Expense
903000 × 10% 90,300

11 Entries Made:
Equipment 2,000
Cash 2,000
Cash 18,000
Equipment 18,000

Correct Entry:
Cash 16,000
Accumulated Deprecation 42,000
Loss on Sale of Equipment 2,000
Equipment 60,000

Adjusting Entry:
Accumulated Deprecation 42,000
Loss on Sale of Equipment 2,000
Equipment 44,000

12 Depreciation Recorded 94,800

Correct Deprecation
Overstatement of 90,300
Deprecation 4,500

Adjusting Entry:
Accumulated Deprecation 4,500
Depreciation Expense 4,500