Jan, 1 Retired a piece of machinery that was purchased on January 1, 2007. The m

Question

Jan, 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,000 and had a useful life of 10 years with no salvage value. une 30 Sold a computer that was purchased on January 1, 2015. The computer cost $35,40 and had a usefu life of4 years with no salvage value. The computer wes sold or $,600 ash. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Pronghorn Corporation uses straight-line depreciation. (Record entries int 62

Explanation / Answer

Journal Entries Date Accounts title and explanations Debit $ Credit $ Jan 1 2017 Accumulated depreciation-EquipmentDr. 62000      Equipment Account 62000 June 30 2017 Depreciation Expense 4425      Accumulated depreciation-Computer 4425 June 30 2017 Accumulated Depreciation-Computer Dr. 22125 Loss on Disposal of Assets Dr. 18875      Computer Equipment 35400      Cash Account 5600 Dec 31 2017 Depreciation expense Dr. 4260     Accumulated depreciation-Truck 4260 Dec 31 2017 Accumulated Depreciation-Truck Dr. 17040 Loss on dsiposal of assets Dr. 17240    Truck Equipment Account 25000     Cash Account 9280

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