Here are selected 2022 transactions of Sheffield Company. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $64,400 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2019. The computer cost $43,700 and had a useful life of 5 years with no salvage value. The computer was sold for $13,800 cash. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $40,380. 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 on assets disposed of where applicable. Sheffield Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries. 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.) Date Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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### Selected 2022 Transactions of Sheffield Company:

#### Jan. 1
- **Transaction:** Retired a piece of machinery.
- **Details:** Purchased on January 1, 2012. The machine cost $64,400 and had a useful life of 10 years with no salvage value.

#### June 30
- **Transaction:** Sold a computer.
- **Details:** Purchased on January 1, 2019. The computer cost $43,700 and had a useful life of 5 years with no salvage value. The computer was sold for $13,800 cash.

#### Dec. 31
- **Transaction:** Discarded a delivery truck.
- **Details:** Purchased on January 1, 2018. The truck cost $40,380. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

---

### Journalizing Entries
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Sheffield Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.)

**Important Notes:**
- List all debit entries before credit entries.
- 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 0 for the amounts.

---

### Journal Entry Template:
| Date       | Account Titles and Explanation | Debit | Credit |
|------------|--------------------------------|-------|--------|
| Dropdown 1 | Input fields                  | Input | Input  |

---

This instructional content helps accounting students understand how to process and journalize various transactions involving the retirement, sale, and discarding of assets, taking into consideration straight-line depreciation.
Transcribed Image Text:### Selected 2022 Transactions of Sheffield Company: #### Jan. 1 - **Transaction:** Retired a piece of machinery. - **Details:** Purchased on January 1, 2012. The machine cost $64,400 and had a useful life of 10 years with no salvage value. #### June 30 - **Transaction:** Sold a computer. - **Details:** Purchased on January 1, 2019. The computer cost $43,700 and had a useful life of 5 years with no salvage value. The computer was sold for $13,800 cash. #### Dec. 31 - **Transaction:** Discarded a delivery truck. - **Details:** Purchased on January 1, 2018. The truck cost $40,380. It was depreciated based on a 6-year useful life with a $3,000 salvage value. --- ### Journalizing Entries Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Sheffield Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) **Important Notes:** - List all debit entries before credit entries. - 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 0 for the amounts. --- ### Journal Entry Template: | Date | Account Titles and Explanation | Debit | Credit | |------------|--------------------------------|-------|--------| | Dropdown 1 | Input fields | Input | Input | --- This instructional content helps accounting students understand how to process and journalize various transactions involving the retirement, sale, and discarding of assets, taking into consideration straight-line depreciation.
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