Here are selected 2022 transactions of Oriole Company. Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $64,000 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2020. The computer cost $43,500 and had a useful life of 3 years with no salvage value. The computer was sold for $6,700 cash. Sold a delivery truck for $10,000 cash. The truck cost $33,900 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Oriole Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations.) Date Jan. 1 Jan. 1 < Account Titles and Explanation Debit Credit
Here are selected 2022 transactions of Oriole Company. Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $64,000 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2020. The computer cost $43,500 and had a useful life of 3 years with no salvage value. The computer was sold for $6,700 cash. Sold a delivery truck for $10,000 cash. The truck cost $33,900 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Oriole Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations.) Date Jan. 1 Jan. 1 < Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Here are selected 2022 transactions of Oriole Company.
Jan.
1
June
30
Dec. 31
Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $64,000 and had a useful life
of 10 years with no salvage value.
Sold a computer that was purchased on January 1, 2020. The computer cost $43,500 and had a useful life of 3 years
with no salvage value. The computer was sold for $6,700 cash.
Sold a delivery truck for $10,000 cash. The truck cost $33,900 when it was purchased on January 1, 2019, and was
depreciated based on a 5-year useful life with a $3,000 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable.
Oriole Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021). (Credit account titles are
automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no
entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations.)
Date
Jan. 1
Jan. 1
Account Titles and Explanation
Debit
Credit
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