**Journal Entries for Recording Depreciation and Disposal of Equipment**- **January 1:** - Debit: Accumulated Depreciation-Equipment, \$63,000 - Credit: Equipment, \$63,000- **June 30:** - Debit: Depreciation Expense, \$ - Credit: Accumulated Depreciation-Equipment, \$ - (To record depreciation to date of disposal)- **June 30:** - Debit: Cash, \$15,900 - Debit: Accumulated Depreciation-Equipment, \$ - Credit: Gain on Disposal of Plant Assets, \$ - Credit: Equipment, \$39,000 - (To record sale of computer)- **December 31:** - Debit: Depreciation Expense, \$5,890 - Credit: Accumulated Depreciation-Equipment, \$5,890 - (To record depreciation to date of disposal)- **December 31:** - Debit: Accumulated Depreciation-Equipment, \$29,450 - Debit: Loss on Disposal of Plant Assets, \$8,890 - Credit: Equipment, \$38,340These entries describe the accounting process of managing and recording the depreciation and eventual disposal of equipment within a financial period. The journal transactions outline initial depreciation adjustments, the sale of an asset, and the related gain or loss upon its disposal. Here are selected 2022 transactions of Ayayai Company.- **Jan. 1:** Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $63,000 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 $39,000 and had a useful life of 5 years with no salvage value. The computer was sold for $15,900 cash.- **Dec. 31:** Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $38,340. It was depreciated based on a 6-year useful life with a $3,000 salvage value.**Instructions:** Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Ayayai 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 the 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.)*| Date | Account Titles and Explanation | Debit | Credit ||--------|----------------------------------------|--------|--------|| Jan. 1 | Accumulated Depreciation-Equipment | 63,000 | || | Equipment | | 63,000 |

Name: **Journal Entries for Recording Depreciation and Disposal of Equipmen
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: **Journal Entries for Recording Depreciation and Disposal of Equipment**- **January 1:** - Debit: Accumulated Depreciation-Equipment, \$63,000 - Credit: Equipment, \$63,000- **June 30:** - Debit: Depreciation Expense, \$ - Credit: Accumulated De