Question
There are many processes in this, I am very confused. Presented below are selected transactions at Larkspur, Inc. for 2020. Jan. 1 Retired a piece
There are many processes in this, I am very confused.
Presented below are selected transactions at Larkspur, Inc. for 2020.
Jan. | 1 | Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $62,100 on that date. It had a useful life of 10 years with no salvage value. | |
June | 30 | Sold a computer that was purchased on January 1, 2017. The computer cost $36,000. It had a useful life of 5 years with no salvage value. The computer was sold for $15,200. | |
Dec. | 31 | Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $40,440. It was depreciated based on a 6-year useful life with a $3,000 salvage value. |
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Larkspur, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
choose a transaction date | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date | enter an account title to record depreciation to date of disposal | enter a debit amount | enter a credit amount |
enter an account title to record depreciation to date of disposal | enter a debit amount | enter a credit amount | |
(To record depreciation to date of disposal) | |||
June 30 | enter an account title to record sale of computer | enter a debit amount | enter a credit amount |
enter an account title to record sale of computer | enter a debit amount | enter a credit amount | |
enter an account title to record sale of computer | enter a debit amount | enter a credit amount | |
enter an account title to record sale of computer | enter a debit amount | enter a credit amount | |
(To record sale of computer) | |||
choose a transaction date | enter an account title to record depreciation to date of disposal | enter a debit amount | enter a credit amount |
enter an account title to record depreciation to date of disposal | enter a debit amount | enter a credit amount | |
(To record depreciation to date of disposal) | |||
Dec. 31 | enter an account title to record retirement of truck on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record retirement of truck on December 31 | enter a debit amount | enter a credit amount | |
enter an account title to record retirement of truck on December 31 | enter a debit amount | enter a credit amount | |
(To record retirement of truck) |
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