Here are selected 2025 transactions of Sarasota Corporation. Jan, 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2015. The machine cost $61,500 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2023. The computer cost $36,400 and had a useful life of 4 years with no salvage value. The computer was sold for $4,100 cash. Sold a delivery truck for $9,300 cash. The truck cost $24,600 when it was purchased on January 1, 2022, and was depreciated based on a 5-year useful life with a $3,700 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Sarasota Corporation uses straight-line depreciation. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when 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.)
Here are selected 2025 transactions of Sarasota Corporation. Jan, 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2015. The machine cost $61,500 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2023. The computer cost $36,400 and had a useful life of 4 years with no salvage value. The computer was sold for $4,100 cash. Sold a delivery truck for $9,300 cash. The truck cost $24,600 when it was purchased on January 1, 2022, and was depreciated based on a 5-year useful life with a $3,700 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Sarasota Corporation uses straight-line depreciation. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Topic Video
Question
rmn.4
Transcribed Image Text:Date
Jan 1 #
June 30
Dec. 31
Account Titles and Explanation
(To record depreciation expense)
(To record sale of computer)
(To record depreciation expense)
Debit
Credit
Transcribed Image Text:Here are selected 2025 transactions of Sarasota Corporation.
Jan. 1
June 30
Dec. 31
Retired a piece of machinery that was purchased on January 1, 2015. The machine cost $61,500 and had
a useful life of 10 years with no salvage value.
Sold a computer that was purchased on January 1, 2023. The computer cost $36,400 and had a useful life
of 4 years with no salvage value. The computer was sold for $4,100 cash.
Sold a delivery truck for $9,300 cash. The truck cost $24,600 when it was purchased on January 1, 2022,
and was depreciated based on a 5-year useful life with a $3,700 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where
applicable. Sarasota Corporation uses straight-line depreciation. (List all debit entries before credit entries.
Record entries in the order displayed in the problem statement. Credit account titles are
automatically indented when 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.)
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