Your answer is partially correct. Try again. Sunland Company had the following a

Question

Your answer is partially correct. Try again. Sunland Company had the following assets on Jenuary 1, 2017 Cost Purchase Datw (n years) Salvage Value Nachinery $62,480 Jan. 1, 2007 26,400 Jan. 1, 2014 Truck29,392 an.1,2012 During 2017, ach of the assets was removed from servica. The machinery was retired on3anuary ?. The forkit was sold on?una 30 for $10.560. The truck was discarded on December 31. our elize ?1 ent e5 equire o tre above d tes reh dng entnes o update depredotion where apple e, on disposed ssets The com pany use5 5tro ht-ine deprecletion A ce recuation up to date 55 0 December 31 2016. Credit accou t es ? re ?6tomaticaMy in ented when the om untis entered. Do not iment manually-If no ..ntry is required, selwet-No Entry', for th·account titles snd·ntr?fr th" ????Lnts.)

Explanation / Answer

Solution:

Journal Entries Date Particulars Debit Credit 1-Jan Accumulated Depreciation - Equipment Dr $62,480.00           To Equipment $62,480.00 (Being equipment disposed off) 30-Jun Depreciation Expense Dr $2,640.00           To Accumulated Depreciation - Equipment $2,640.00 (Being depreciation expense recorded on forklift) 30-Jun Cash Dr $10,560.00 Accumulated Depreciation - Equipment Dr $18,480.00           To Equipment $26,400.00           To Gain on disposal of plan asset $2,640.00 (To record sale of forklift) 31-Dec Depreciation Expense Dr $3,344.00           To Accumulated Depreciation - Equipment $3,344.00 (Being depreciation expense recorded on Truck) 31-Dec Accumulated Depreciation - Equipment Dr $20,064.00 Loss on disposal of equipment Dr $9,328.00           To Equipment $29,392.00 (Being equipment disposed off)

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