Question

There are many processes in this, I am very confused.

Presented below are selected transactions at Larkspur, Inc. for 2020.

Jan.	1		Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $62,100 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 $36,000. It had a useful life of 5 years with no salvage value. The computer was sold for $15,200.
Dec.	31		Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $40,440. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Larkspur, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date	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	enter an account title to record depreciation to date of disposal	enter a debit amount	enter a credit amount
	enter an account title to record depreciation to date of disposal	enter a debit amount	enter a credit amount
	(To record depreciation to date of disposal)
June 30	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	enter an account title to record depreciation to date of disposal	enter a debit amount	enter a credit amount
	enter an account title to record depreciation to date of disposal	enter a debit amount	enter a credit amount
	(To record depreciation to date of disposal)
Dec. 31	enter an account title to record retirement of truck on December 31	enter a debit amount	enter a credit amount
	enter an account title to record retirement of truck on December 31	enter a debit amount	enter a credit amount
	enter an account title to record retirement of truck on December 31	enter a debit amount	enter a credit amount
	(To record retirement of truck)

Answer 1

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Larkspur, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.)

Date	Account Titles and Explanation	Debit	Credit
Jan 1	Accumulated depreciation-Machine	62100
	Machine		62100
June 30	Depreciation expense (36000/5*3.5)	3600
	Accumulated depreciation-Computer		3600
	(To record depreciation to date of disposal)
June 30	Cash	15200
	Accumulated depreciation-Computer	25200
	Gain on sale of computer		4400
	Computer		36000
	(To record sale of computer)
Dec 31	Depreciation expense (40440-3000/6)	6240
	Accumulated depreciation-Truck		6240
	(To record depreciation to date of disposal)
Dec. 31	Accumulated depreciation-Truck	31200
	Loss on disposal of truck	9240
	Truck		40440
	(To record retirement of truck)