Wildhorse Co. had the following assets on January 1, 2017. Useful Life (in years

Question

Wildhorse Co. had the following assets on January 1, 2017. Useful Life (in years) 10 Purchase Date Salvage Value $ 0 ItemCost Machinery $66,740 Jan. 1, 2007 Forklift 28,200 Jan. 1, 2014 Truck 31,400 Jan. 1, 201:2 8 2,824 During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,280. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

Jan-01 Accumulated depreciation - machinary $ 66,740 Machinary $ 66,740 Jun-30 Cash $ 15,800 Accumulated depreciation - Forklift ($28,200/5*3) $ 16,920 depreciation expense ($28,200/5*6/12) $    2,820 Forklift $ 28,200 Gain on sale of assets $    7,340 Dec-31 Accumulated depreciation - truck (($31,400-$2,824)/8*6) $ 21,432 Loss on disposal $ 15,108 Truck $ 36,540

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