Question

Here are selected 2017 transactions of Flint Corporation. Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,900 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2015. The computer cost $36,400 and had a useful life of 4 years with no salvage value. The computer was sold for $4,600 cash. Sold a delivery truck for $9,470 cash. The truck cost $24,500 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,500 salvage value. Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where applicable. Flint Corporation uses straight-line depreciation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Retained Earnings Revenue - Expense - Cash + Equipment - Accum. Depr. - Equip. = + Common Stock + Dividend Jan. 1 61,900 June 30 36,400 Depreciation expen 31,800 09 1 T Loss on disposal Loss Dec. 31 ,020 Depreciation expen 3,500 Gain on disposal

Answer 1

	Assets					=	Liabilities	+	Stockholders' Equity
	Cash	+	Equipment	-	Accum. Depr.-Equip						Retained Earnings					Account title for Retained Earnings
									Common stock	+	Revenue	-	Expense	-	Dividend
Jan-01			$ -61,900		$ 61,900
Jun-30					$ 4,550								$ 4,550			Depreciation expense-Equipment
	$ 4,600		$ -36,400		$ 22,750								$ 9,050			Loss on Sale of equipment
Dec-31					$ 4,200								$ 4,200			Depreciation expense-Delivery truck
	$ 9,470		$ -24,500		$ 16,800						$ 1,770					Gain on sale of delivery truck