Question 8 Presented below are selected transactions at Tongun Company for the financial year ending 30 June 2019 1 July 2018 Retired a piece of machinery that was purchased on 1 July 2008 The machine cost $62,000 on that date It had a useful life of 10 years with no residual value 1 Jan 2019 Sold a computer that was purchased on 1 July 2015 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 June 2019 Discarded a delivery truck that was purchased on 1 July 2014 The truck cost $33,000 It was depreciated based on a 6 year useful life with a $3,000 residual value Required 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 2018 ) (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 Accounts Debit Credit 2018 July 1 Truck Accumulated depreciationmachinery Accumulated depreciationtruck Accumulated depreciationcomputer Computer Machinery Depreciation expense Gain on disposal Loss on disposal Delivery truck Cash Delivery truck Machinery Accumulated depreciationcomputer Computer Truck Cash Accumulated depreciationtruck Loss on disposal Depreciation expense Gain on disposal Accumulated depreciationmachinery 2019 Jan 1 Gain on disposal Accumulated depreciationmachinery Machinery Delivery truck Truck Accumulated depreciationcomputer Accumulated depreciationtruck Computer Cash Depreciation expense Loss on disposal Delivery truck Accumulated depreciationtruck Accumulated depreciationmachinery Gain on disposal Accumulated depreciationcomputer Depreciation expense Machinery Loss on disposal Truck Cash Computer 2019 Jan 1 Accumulated depreciationmachinery Loss on disposal Computer Machinery Truck Depreciation expense Accumulated depreciationcomputer Delivery truck Gain on disposal Cash Accumulated depreciationtruck Delivery truck Accumulated depreciationtruck Depreciation expense Truck Loss on disposal Machinery Computer Cash Accumulated depreciationmachinery Accumulated depreciationcomputer Gain on disposal Machinery Delivery truck Accumulated depreciationtruck Depreciation expense Computer Cash Gain on disposal Accumulated depreciationcomputer Accumulated depreciationmachinery Truck Loss on disposal Accumulated depreciationtruck Delivery truck Cash Accumulated depreciationcomputer Truck Depreciation expense Accumulated depreciationmachinery Gain on disposal Machinery Computer Loss on disposal 2019 June 30 Truck Accumulated depreciationmachinery Accumulated depreciationcomputer Cash Computer Depreciation expense Machinery Accumulated depreciationtruck Gain on disposal Loss on disposal Delivery truck Cash Depreciation expense Gain on disposal Computer Loss on disposal Accumulated depreciationmachinery Accumulated depreciationtruck Delivery truck Machinery Accumulated depreciationcomputer Truck 2019 June 30 Cash Machinery Loss on disposal Delivery truck Accumulated depreciationmachinery Accumulated depreciationtruck Accumulated depreciationcomputer Truck Gain on disposal Computer Depreciation expense Machinery Gain on disposal Computer Loss on disposal Accumulated depreciationmachinery Delivery truck Cash Accumulated depreciationtruck Depreciation expense Accumulated depreciationcomputer Truck Truck Depreciation expense Accumulated depreciationmachinery Computer Cash Gain on disposal Accumulated depreciationtruck Accumulated depreciationcomputer Machinery Loss on disposal Delivery truck

Question

Question 8 Presented below are selected transactions at Tongun Company for the financial year ending 30 June 2019  1 July 2018 Retired a piece of machinery that was purchased on 1 July 2008  The machine cost $62,000 on that date  It had a useful life of 10 years with no residual value  1 Jan  2019 Sold a computer that was purchased on 1 July 2015  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 June 2019 Discarded a delivery truck that was purchased on 1 July 2014  The truck cost $33,000  It was depreciated based on a 6 year useful life with a $3,000 residual value  Required 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 2018 ) (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 Accounts Debit Credit 2018 July 1 Truck Accumulated depreciationmachinery Accumulated depreciationtruck Accumulated depreciationcomputer Computer Machinery Depreciation expense Gain on disposal Loss on disposal Delivery truck Cash Delivery truck Machinery Accumulated depreciationcomputer Computer Truck Cash Accumulated depreciationtruck Loss on disposal Depreciation expense Gain on disposal Accumulated depreciationmachinery 2019 Jan  1 Gain on disposal Accumulated depreciationmachinery Machinery Delivery truck Truck Accumulated depreciationcomputer Accumulated depreciationtruck Computer Cash Depreciation expense Loss on disposal Delivery truck Accumulated depreciationtruck Accumulated depreciationmachinery Gain on disposal Accumulated depreciationcomputer Depreciation expense Machinery Loss on disposal Truck Cash Computer 2019 Jan  1 Accumulated depreciationmachinery Loss on disposal Computer Machinery Truck Depreciation expense Accumulated depreciationcomputer Delivery truck Gain on disposal Cash Accumulated depreciationtruck Delivery truck Accumulated depreciationtruck Depreciation expense Truck Loss on disposal Machinery Computer Cash Accumulated depreciationmachinery Accumulated depreciationcomputer Gain on disposal Machinery Delivery truck Accumulated depreciationtruck Depreciation expense Computer Cash Gain on disposal Accumulated depreciationcomputer Accumulated depreciationmachinery Truck Loss on disposal Accumulated depreciationtruck Delivery truck Cash Accumulated depreciationcomputer Truck Depreciation expense Accumulated depreciationmachinery Gain on disposal Machinery Computer Loss on disposal 2019 June 30 Truck Accumulated depreciationmachinery Accumulated depreciationcomputer Cash Computer Depreciation expense Machinery Accumulated depreciationtruck Gain on disposal Loss on disposal Delivery truck Cash Depreciation expense Gain on disposal Computer Loss on disposal Accumulated depreciationmachinery Accumulated depreciationtruck Delivery truck Machinery Accumulated depreciationcomputer Truck 2019 June 30 Cash Machinery Loss on disposal Delivery truck Accumulated depreciationmachinery Accumulated depreciationtruck Accumulated depreciationcomputer Truck Gain on disposal Computer Depreciation expense Machinery Gain on disposal Computer Loss on disposal Accumulated depreciationmachinery Delivery truck Cash Accumulated depreciationtruck Depreciation expense Accumulated depreciationcomputer Truck Truck Depreciation expense Accumulated depreciationmachinery Computer Cash Gain on disposal Accumulated depreciationtruck Accumulated depreciationcomputer Machinery Loss on disposal Delivery truck

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1 July 2018		Retired a piece of machinery that was purchased on 1 July 2008. The machine cost $62,000 on that date. It had a useful life of 10 years with no residual value.
1 Jan. 2019		Sold a computer that was purchased on 1 July 2015. 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 June 2019		Discarded a delivery truck that was purchased on 1 July 2014. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 residual value.

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Question 8 Presented below are selected transactions at Tongun Company for the financial year ending 30 June 2019. 1 July 2018 Retired a piece of

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Date	Accounts	Debit	Credit
2018 July 1	Truck Accumulated depreciationmachinery Accumulated depreciationtruck Accumulated depreciationcomputer Computer Machinery Depreciation expense Gain on disposal Loss on disposal Delivery truck Cash
	Delivery truck Machinery Accumulated depreciationcomputer Computer Truck Cash Accumulated depreciationtruck Loss on disposal Depreciation expense Gain on disposal Accumulated depreciationmachinery
2019 Jan. 1	Gain on disposal Accumulated depreciationmachinery Machinery Delivery truck Truck Accumulated depreciationcomputer Accumulated depreciationtruck Computer Cash Depreciation expense Loss on disposal
	Delivery truck Accumulated depreciationtruck Accumulated depreciationmachinery Gain on disposal Accumulated depreciationcomputer Depreciation expense Machinery Loss on disposal Truck Cash Computer
2019 Jan. 1	Accumulated depreciationmachinery Loss on disposal Computer Machinery Truck Depreciation expense Accumulated depreciationcomputer Delivery truck Gain on disposal Cash Accumulated depreciationtruck
	Delivery truck Accumulated depreciationtruck Depreciation expense Truck Loss on disposal Machinery Computer Cash Accumulated depreciationmachinery Accumulated depreciationcomputer Gain on disposal
	Machinery Delivery truck Accumulated depreciationtruck Depreciation expense Computer Cash Gain on disposal Accumulated depreciationcomputer Accumulated depreciationmachinery Truck Loss on disposal
	Accumulated depreciationtruck Delivery truck Cash Accumulated depreciationcomputer Truck Depreciation expense Accumulated depreciationmachinery Gain on disposal Machinery Computer Loss on disposal
2019 June 30	Truck Accumulated depreciationmachinery Accumulated depreciationcomputer Cash Computer Depreciation expense Machinery Accumulated depreciationtruck Gain on disposal Loss on disposal Delivery truck
	Cash Depreciation expense Gain on disposal Computer Loss on disposal Accumulated depreciationmachinery Accumulated depreciationtruck Delivery truck Machinery Accumulated depreciationcomputer Truck
2019 June 30	Cash Machinery Loss on disposal Delivery truck Accumulated depreciationmachinery Accumulated depreciationtruck Accumulated depreciationcomputer Truck Gain on disposal Computer Depreciation expense
	Machinery Gain on disposal Computer Loss on disposal Accumulated depreciationmachinery Delivery truck Cash Accumulated depreciationtruck Depreciation expense Accumulated depreciationcomputer Truck
	Truck Depreciation expense Accumulated depreciationmachinery Computer Cash Gain on disposal Accumulated depreciationtruck Accumulated depreciationcomputer Machinery Loss on disposal Delivery truck