Question

Exercise 10-09 Presented below are selected transactions at Concord Company for 2020. lan 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $60,600 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2017. The computer cost $38,000. It had a useful life of 5 years with no salvage value. The computer was sold for $13.400 Dec 31 Discarded a delivery truck that was purchased o) January 1, 2016. The truck cost $35,420. It was depreciated based on a 6-year useful life with a $3,000 salvage value loumalize all entries retired on the above dates including entries to undate correlation with

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Jan	Accumulated depreciation					60,600
	Equipment						60,600
30-Jun	Depreciation expense					3800
	Accumulated depreciation						3,800
	(38000/5)*6/12
30-Jun	Cash					13,400
	Accumulated depreciation					26600
	Gain on disposal						2,000
	Equipment						38,000
31-Dec	Depreciation expense					5570
	Accumulated depreciation						5570
	(36420-3000)/6
31-Dec
	Accumulated depreciation					27850
	loss on disposal					8,570
	Equipment						36,420