Question

Presented below are selected transactions at Oriole Company for 2020.

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $63,300 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, 2017. The computer cost $45,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,300. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $34,560. 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. Oriole Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.)

Answer 1

Answer-

Date	Title	Debit	Credit
Jan-01	Accumulated depreciation - Machinery	$ 63,300
	Machinery		$ 63,300
Jun-30	Depreciation expenses ($45,000 / 5 * 6/12)	$    4,500
	Accumulated depreciation - Computer		$    4,500
	Cash	$ 14,300
	Accumulated depreciation - Computer (($45,000/5*3)+$4,500)	$ 31,500
	Computer		$ 45,000
	Gain on sale of asset		$        800
Dec-31	Depreciation expense (($34,560 -$3,000)/6*1)	$    5,260
	Accumulated depreciation - Truck		$    5,260
	Accumulated depreciation - Truck (($34,560 -$3,000)/6*4)+$5,260)	$ 26,300
	Loss on disposal of plant assets	$    8,260
	Truck		$ 34,560

Kindly give me thumbs up if u like my answer...Thanks!!!