Question

Here are selected 2022 transactions of Sunland Company.

Jan.	1		Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $62,100 and had a useful life of 10 years with no salvage value.
June	30		Sold a computer that was purchased on January 1, 2020. The computer cost $38,400 and had a useful life of 3 years with no salvage value. The computer was sold for $6,000 cash.
Dec.	31		Sold a delivery truck for $10,000 cash. The truck cost $32,100 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,000 salvage value.

Answer 1

Date	Account title and explanation	Debit	Credit
Jan 1,2022	Accumulated depreciation-Machinery	$62,100
	Machinery		$62,100
	[To record retirement of machinery]
June 30,2022	Cash	$6,000
	Accumulated depreciation-Computer [($38,400/3) x 2.5 yrs]	$32,000
	Loss on sale of computer	$400
	Computer		$38,400
	[To record sale of computer]
Dec 31,2022	Cash	$10,000
	Accumulated depreciation-Delivery turck [($32,100-$3,000)/5 yrs] x 4 yrs	$23,280
	Delivery truck		$32,100
	Gain on sale of delivery truck		$1,180
	[To record sale of delivery truck]