Question

Here are selected 2017 transactions of Ayayai Corporation.

Jan. 1		Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,000 and had a useful life of 10 years with no salvage value.
June 30		Sold a computer that was purchased on January 1, 2015. The computer cost $35,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,000 cash.
Dec. 31		Sold a delivery truck for $9,000 cash. The truck cost $23,000 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,200 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Ayayai Corporation uses straight-line depreciation. (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.)

Answer 1

Journal entries

Date	General Journal	Debit	Credit
Jan 1	Accumulated depreciation-Machinery	61000
	Machinery		61000
June 30	Depreciation expense (35000/4)*6/12	4375
	Accumulated depreciation-Computer		4375
June 30	Cash	4000
	Accumulated depreciation-Computer (35000/4*2.5)	21875
	Loss on sale of computer	9125
	Computer		35000
Dec 31	Depreciation expense (23000-3200/5)	3960
	Accumulated depreciation-Truck		3960
Dec 31	Cash	9000
	Accumulated depreciation-Truck (3960*4)	15840
	Gain on sale of truck		1840
	Truck		23000