Answered: Here are selected 2022 transactions of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Here are selected 2022 transactions of Sunland Company.

Jan.	1	Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $62,100 and had a useful life of 10 years with no salvage value.
June	30	Sold a computer that was purchased on January 1, 2020. The computer cost $38,400 and had a useful life of 3 years with no salvage value. The computer was sold for $6,000 cash.
Dec.	31	Sold a delivery truck for $10,000 cash. The truck cost $32,100 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. Sunland 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 0 for the amounts. Do not round intermediate calculations.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title to record the depreciation to date of disposal

enter a debit amount

enter a credit amount

enter an account title to record the depreciation to date of disposal

enter a debit amount

enter a credit amount

(To record depreciation to date of disposal)

choose a transaction date

enter an account title to record the sale of the computer on June 30

enter a debit amount

enter a credit amount

enter an account title to record the sale of the computer on June 30

enter a debit amount

enter a credit amount

enter an account title to record the sale of the computer on June 30

enter a debit amount

enter a credit amount

enter an account title to record the sale of the computer on June 30

enter a debit amount

enter a credit amount

(To record sale of computer)

choose a transaction date

enter an account title to record the depreciation to date of disposal

enter a debit amount

enter a credit amount

enter an account title to record the depreciation to date of disposal

enter a debit amount

enter a credit amount

(To record depreciation to date of disposal)

choose a transaction date

enter an account title to record the retirement of the truck on December 31

enter a debit amount

enter a credit amount

enter an account title to record the retirement of the truck on December 31

enter a debit amount

enter a credit amount

enter an account title to record the retirement of the truck on December 31

enter a debit amount

enter a credit amount

enter an account title to record the retirement of the truck on December 31

enter a debit amount

enter a credit amount

(To record retirement of truck)

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