Here are selected 2007 transactions of Beck Corporation.

Jan. 1 Retired a piece of machinery that was purchased on January 1, 1997. The machine cost $62,000 and had a useful life of 10 years with no salvage value.

Sold a computer that was purchased on January 1, 2005. The computer cost $33,000 and had a useful life of 3 years with no salvage value. The computer was sold for $5,000 cash.

Sold a delivery truck for $9,000 cash. The truck cost $27,000 when it was purchased on January 1, 2004, and was depreciated based on a 5-year useful life with a $3,000 salvage value.

June 30 Dec. 31 Journalize transactions related to disposals of plant assets.

(SO 5)

Record disposal of equipment.

{SQ 5}

458 CHAPTER 9_ Reporting and Analyzing Long-Lived Assets Apply accounting concepts.

(SO 1,.6, 7)

Calculate asset turnover ratio and return on assets ratio.

(SO 6)

Cae Calculate and interpret ratios.

(SO 6)

Fa CEES Calculate and interpret ratios.

(SO 6)

CEC Instructions owes Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Beck Corporation uses straight-line depreciation.