Here are selected 2014 transactions of Cleland Corporation. Journalize all entri

Question

Here are selected 2014 transactions of Cleland Corporation.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland 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.)

Date

Account Titles and Explanation

Debit

Credit

(To record depreciation expense for the first 6 months of 2014)

(To record depreciation expense for the year 2014)

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,250 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2012. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,480 cash. Dec. 31 Sold a delivery truck for $9,030 cash. The truck cost $23,470 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $4,010 salvage value.

Explanation / Answer

Working Note

Working Note

Date Account Titles & Explanation Debit Credit Jan,1 2014 Accumulated Depreciation-Machinery 62250 Machinery 62250

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