Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The m

Question

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,000 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2012. The computer cost $36,000 and had a useful life of 3 years with no salvage value. The computer was sold for $5,000 cash. Dec. 31 Sold a delivery truck for $9,000 cash. The truck cost $25,000 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $4,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Date Account Title Debit Credit $ $ Jan 1 Accumulated depreciation 62,000 Machinery 62,000 June 30 Cash 5,000 Accumulated depreciation 36,000 Computer 36,000 Gain on sale of computer 5,000 December 31 Cash 9,000 Accumulated depreciation 21,000 Truck 25,000 Gain on sale of truck 5,000

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