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Presented below are selected transactions at Tongun Company for the financial year ending 30 Jun. 2017. 1 Jul. 2016 Retired a piece of machinery that
Presented below are selected transactions at Tongun Company for the financial year ending 30 Jun. 2017.
1 Jul. 2016 | Retired a piece of machinery that was purchased on 1 July 2006. The machine cost $62 000 on that date. It had a useful life of 10 years with no residual value. | |
1 Jan. 2017 | Sold a computer that was purchased on 1 July 2013. The computer cost $35 000. It had a useful life of 5 years with no residual value. The computer was sold for $12 000. | |
30 Jun. 2017 | Discarded a delivery truck that was purchased on 1 July 2012. The truck cost $33 000. It was depreciated based on a 6-year useful life with a $3 000 residual value. |
Instructions Journalise all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Tongun Company uses straight-line depreciation. (Assume depreciation is up to date as of 30 June 2016.) (Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Particulars Debit Credit 1 Jul. 2016 1 Jan. 2017 Accumulated depreciation - computer 1 Jan. 2017 Accumulated depreciation - computer Computer 30 Jun. 2017 Depreciation expense 30 Jun. 2017 Depreciation expense Accumulated depreciation - truck 30 Jun 2017 Loss on disposal Delivery truck
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