Here are selected 2017 transactions of Monty Corporation. Jan. June Sold a compu

Question

Here are selected 2017 transactions of Monty Corporation. Jan. June Sold a computer that was purchased on January 1, 2015 1 Retired a piece of machinery that $4,000 cash, $3,700 salvage value. was purchased on January 1, 2007. The machine cost s61,800 and had a useful life of 10 years with no salvage value. . The computer cost $36,000 and had a useful life of 4 years with no salvage value. The computer was sold for 30 Dec. Sold a delivery truck for $9,400 cash. The truck cost $23,800 when it was purchased on January 1, 2014, and was depreciated based on a S-year useful itfe with a 31 Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Monty Corporation uses straight-ine depreciation. (Record entries in the order displayed in the problem statement. Credit account titles are automaticalily indented when amount is entered. Do not indent manualy. I no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

Date Journal entry Debit($) Credit($)

Jan 1 AccumulatedDepreciation expense $6180

To Machinary $6180

June 30 Depreciation expense $4500

To Accummulated depreciation $4500

Cash $4000

Accumulated depreciation $22500

Loss on sale of computer $9500

To computer $36000

Dec 31 Depreciation $4020

To Accumulated depreciation $4020

Cash $9400

Accumulated depreciation $16080

To Truck $23800

To gain on sale $1680.

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