Exercise 9-8

Here are selected 2014 transactions of Cleland Corporation.

Jan. 1		Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $61,000 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 $36,600 and had a useful life of 4 years with no salvage value. The computer was sold for $4,220 cash.
Dec. 31		Sold a delivery truck for $9,260 cash. The truck cost $24,900 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,320 salvage value.

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.)

Account Titles and Explanation Date Jan. 1 v Accumulated Depreciatior Equipment June 30 Depreciation Expense Cash ecord depreciation expense for the first 6 months of 2014) Or Depreciation-Equipment Cash Loss on Disposal of Plant Equipment Dec. 31 v Depreciation Expense Depreciation-Equipment ecord depreciation expense for the ear 2014) Or ccumulated Depreciatioi cash Equipment Gain on Disposal of Plant Debit 61000 Credit 61000