Question

an. 1 Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $62,900 on that date. It had a useful life of 10 years with no salvage value. computer that was purchased on January 1, 2016. The computer cost $43,200. It had a useful life of 5 years with no salvage value. The computer was sold for in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Do not round

Answer 1

Date	Account Description	Debit	Credit
1-Jan	Accumulated Depreciation- Machinery	$        62,900
	Machinery		$        62,900
	(To record the ritirement of machinery)
30-Jun	Depreciation	$          4,320
	Accumulated Depreciation- Computer		$          4,320
	(To Record the Depreciation till Disposal date)
30-Jun	Cash	$        15,100
	Accumulated Depreciation (4320+25920)	$        30,240
	Computer		$        43,200
	Gain on Disposal		$          2,140
	(To Record Disposal of Computer)
31-Dec	Depreciation	$          5,600
	Accumulated Depreciation		$          5,600
	(To Record Depreciation on Truck)
31-Dec	Loss on Retirement	$          8,600
	Accumulated Depreciation	$        28,000
	Truck		$        36,600
	(To Record the Discarding of Truck)

Cost of Computer	=	$ 43,200
Useful Life	=	5 Years
Depreciation per Year	=	$    8,640
Accumulated Depreciation on 1 Jan 2019(8640*3)	=	$ 25,920
Depreciation- 2019 ( 8640/12*6)	=	$    4,320

Cost of Truck	=	$ 36,600
Salvage Value	=	$    3,000
Depreciable Value	=	$ 33,600
Useful Life	=	6 Years
Depreciation per Year	=	$    5,600
Accumulated Depreciation on 1 Jan 2019(5600*4)	=	$ 22,400
Depreciation- 2019	=	$    5,600
Total Accumulated Depreciation	=	$ 28,000

Please note in the last Journal entry I have assumed that the Truck is discarded with no cash flow in the absence of information.

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