Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $64,700 on that date. It had a useful life of 10 years with no salvage value.Jun.30 Sold a computer that was purchased on January 1, 2017. The computer cost $38,400. It had a useful life of 5 years with no salvage value. The computer was sold for $15,200.Dec.31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $44,160. 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, where applicable, on assets disposed of. Kingbird, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (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.)

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Answered: Jan. 1 Retired a piece of machinery…

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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Jan.	1	Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $64,700 on that date. It had a useful life of 10 years with no salvage value.
Jun.	30	Sold a computer that was purchased on January 1, 2017. The computer cost $38,400. It had a useful life of 5 years with no salvage value. The computer was sold for $15,200.
Dec.	31	Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $44,160. 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, where applicable, on assets disposed of. Kingbird, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (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.)

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