Homework #2 Question : Luther Company's selected transactions during 2017, 2018, 2019 and 2020 are...
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Homework #2 Question : Luther Company's selected transactions during 2017, 2018, 2019 and 2020 are as follows: July 1, 2017 Paid 20.000 TL cash plus 800 TL in sales tax for a machinery estimated to have a five-year life and a 2.150 TL salvage value. The machine requires installation cost of 5.000 TL and also company paid transportation cost of 700 TL. Machinery will be depreciated by using double-declining balance method. Jan 1, 2018 Paid 82.000 TL cash for a new delivery truck and custom duties and fees of 2.200 TL are paid in cash. The truck has estimated useful life of five-years and a 6.000 TL salvage value. The truck will be depreciated by using straight-line method. Jan. 1, 2019 The company paid 12.000 TL for engine overhaul that extend the life of the machine for a total of 6 years. The new salvage value is 5.000 TL. May. 31, Traded the packaging machine for a new one, priced at 42.000 TL 2020 receiving a trade in allowance of 14.000 TL paying 28.000 TL in cash. June. 30, Traded the truck for a new one priced at 51.000 TL receiving a 2020 trade in allowance of 10.000 TL paying the balance in cash. Required: Record the transactions and adjusting entries in general journal form
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