Question

Exercise 23-19

The accounts below appear in the ledger of Sweet Company.

		Retained Earnings		Dr.		Cr.		Bal.
Jan. 1, 2017		Credit Balance						$41,800
Aug. 15		Dividends (cash)		$14,800				27,000
Dec. 31		Net Income for 2017				$40,400		67,400
		Equipment		Dr.		Cr.		Bal.
Jan. 1, 2017		Debit Balance						$141,300
Aug. 3		Purchase of Equipment		$61,900				203,200
Sept. 10		Cost of Equipment Constructed		47,500				250,700
Nov. 15		Equipment Sold				$55,800		194,900
		Accumulated Depreciation—Equipment		Dr.		Cr.		Bal.
Jan. 1, 2017		Credit Balance						$83,400
Apr. 8		Major Repairs		$21,200				62,200
Nov. 15		Accum. Depreciation on Equipment Sold		25,100				37,100
Dec. 31		Depreciation for 2017				$16,600		53,700

Prepare entries in journal form for all adjustments that should be made on a worksheet for a statement of cash flows. The loss on sale of equipment (November 15) was $5,900. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answer 1

Date	Account Titles	Debit	Credit
		$	$
Aug 15, 2017	Retained earnings	14,800
	Cash dividend		14,800
	To record cash dividends
Dec 31, 2017	Income Summary	40,400
	Retained Earnings		40,400
	To record net income
Dec 31, 2017	Depreciation Expense	16,600
	Accumulated Depreciation- equipment		16,600
	To record depreciation expense
Aug 3, 2017	Equipment	62,200
	Investing - purchase of equipment		61900
	Investing - construction of equipment		47500
	To record new equipment
April 8, 2017	Accumulated Depreciation : Equipment	21200
	Repair expense		21200
	To record repairs
Nov 15 2017	Cash /sale of equipment	24,800
	Accumulated Depreciation	25100
	Loss on Sale of Equipment	5,900
	Equipment		55,800
	To record sale of equipment