Question

Presented below are selected transactions at Metlock, Inc. for 2019.

Jan.	1		Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $61,800 on that date. It had a useful life of 10 years with no salvage value.
June	30		Sold a computer that was purchased on January 1, 2016. The computer cost $39,000. It had a useful life of 5 years with no salvage value. The computer was sold for $15,800.
Dec.	31		Discarded a delivery truck that was purchased on January 1, 2015. The truck cost $36,540. 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. Metlock, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2018.) (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.)

Answer 1

Jan. 1	Accumulated dep. - Machinery	61800
	Machinery		61800
Jun-30	Dep. Exp. ( 39000 / 5 ) * 6/12	3900
	Accumulated dep. - Computer		3900
	cash	15800
	Accumulated dep. - Computer (7800 * 3 ) + 3900	27300
	Gain on sale of computer		4100
	Computer		39000
Dec. 31	Dep. Exp. ( 36540 - 3000 ) / 6	5590
	Accumulated dep. - truck		5590
	Accumulated dep. - truck ( 5590 * 5 years )	27950
	Loss on truck	8590
	Truck		36540