Question

Here are selected 2022 transactions of Swifty Corporation.

Jan. 1		Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61,300 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 $35,200 and had a useful life of 4 years with no salvage value. The computer was sold for $5,700 cash.
Dec. 31		Sold a delivery truck for $9,500 cash. The truck cost $23,000 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $4,000 salvage value.

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date Jan. 1June 30Dec. 31	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date Jan. 1June 30Dec. 31	Enter an account title to record depreciation expense for 2017	Enter a debit amount	Enter a credit amount
	Enter an account title to record depreciation expense for 2017	Enter a debit amount	Enter a credit amount
	(To record depreciation expense)
	Enter an account title to record sale of computer	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale of computer	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale of computer	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale of computer	Enter a debit amount	Enter a credit amount
	(To record sale of computer)
Choose a transaction date June 30Dec. 31Jan. 1	Enter an account title to record depreciation expense for 2017	Enter a debit amount	Enter a credit amount
	Enter an account title to record depreciation expense for 2017	Enter a debit amount	Enter a credit amount
	(To record depreciation expense)
	Enter an account title to record sale of delivery truck	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale of delivery truck	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale of delivery truck	Enter a debit amount	Enter a credit amount
	Enter an account title to record sale of delivery truck	Enter a debit amount	Enter a credit amount
	(To record sale of delivery truck)

Answer 1

Date Account Titles and Explanation Debit Credit Jan 1. Accumulated Depreciation-Machinery | Machinery $61,300 June 30 Depreciation Expense $4,400 Accumulated Depreciation-Computer ($35,200 x 1/4 x 6/12) $4,400 (To record depreciation expense) June 30 Cash $5,700 Accumulated Depreciation-Computer $22,000 Gain on Disposal of Plant Assets $7,500 Computer $35,200 (To record sale of computer) Dec 31 Depreciation Expense $3,800 Accumulated Depreciation-Truck [($23,000 - $4,000) 1/5] $3,800 (To record depreciation expense) Dec 31 Loss on Disposal of Plant Assets $7,800 Accumulated Depreciation-Truck [($23,000 - $4,000) 4/5] $15,200 Truck $23,000 (To record sale of delivery truck) June 30: By December 31, 2021, the accumulated depreciation account would have a balance of $17,600 (2 yrs); after which the accumulated depreciation would be $22,000, and the carrying amount $13,200. If it was sold for $5,700, there would be a gain of $7,500.