Question

Here are selected 2022 transactions of Indigo Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61.800 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2020. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,000 cash. Dec. 31 Solda delivery truck for $9,330 cash. The truck cost $23.600 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,200 salvage value. Journalize all entries required on the above dales, including entries to update depreciation on assets disposed of, where applicable. Indigo Corporation uses straight-line depreciation. (Record entries in the order displayed in the problem solemnerit. Credil account Ulles we automatically in critered. Do not indent manually. If no entry is required, select "No Entry for the accounc titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 17 June 30 (To record depreciation expense) (To record sale of computer) Dec. 31 (To record depreciation expense) (To record sale of delivery truck)

Answer 1

Journal entry

Date	account and explanation	debit	credit
Jan 1	Accumlated depreciation-Machinery	61800
	Machinery		61800
	(To record machine retired)
June 30	Depreciation expense (37000/4)*6/12	4625
	Accumlated depreciation-Computer		4625
	(To record dep)
June 30	Cash	4000
	Accumlated depreciation-Computer (37000/4)*2.5	23125
	Loss on sale of computer	9875
	Computer		37000
	(To record sale of computer)
Dec 31	Depreciation expense (23600-3200)/5	4080
	Accumlated depreciation-Delivery truck		4080
	(To record dep)
Dec 31	Cash	9380
	Accumlated depreciation-Delivery truck (4080*4)	16320
	Gain on sale of delivery truck		2100
	Delivery truck		23600
	(To record sale of truck)