Question

Oriole Company had the following assets on January 1,2025. During 2025, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,300. The truck was discarded on December 31 . Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2024. (List all debit entries before credit entries. Credit account titles are outomotically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation expense on forklift) (To record sale of forklift) (To record sale of forkift) (To record depreciation expense on truck) (To record disposal of truck)

Answer 1

Journal entries must be made for the retirement, sale, and disposal of Oriole Company's assets. Depreciation is first updated for the forklift and truck, followed by entries that reflect the sale of the forklift and the disposal of the truck, including the recognition of any gain or loss.

Step-by-step explanation:

To journalize the asset disposals for Oriole Company, we need to make several entries for the machinery, forklift, and truck. Since the company uses straight-line depreciation and all depreciation was up to date as of December 31, 2024, we'll only need to record depreciation for the forklift and truck for the part of 2025 they were used.

Assuming we're given the cost and accumulated depreciation for these assets, the entry to record depreciation on the forklift up to its sale date (June 30, 2025) would be:
Depreciation Expense - Debit

Accumulated Depreciation - Forklift - Credit

To record the sale of the forklift on June 30, 2025, we would:
Cash - Debit (for the sale amount, $12,300)

Accumulated Depreciation - Forklift - Debit (for the accumulated depreciation amount)

Forklift - Credit (for the original cost)

Any difference would be recorded as a gain or loss on sale.

For the truck discarded on December 31, 2025, first record depreciation for the year:
Depreciation Expense - Debit

Accumulated Depreciation - Truck - Credit

Then record the disposal:

Accumulated Depreciation - Truck - Debit

Truck - Credit

Any difference would go to loss on disposal account (if disposal has no proceeds).

Answer 2

The question requires journal entries for disposing of assets, including updating depreciation and recording sales. Since the asset details are not given, generic entries include recording updated depreciation, disposing assets, and recognizing any gain or loss on sale.

Step-by-step explanation:

The question relates to making journal entries for asset disposals including updating depreciation and recording the sale or disposal of assets for Oriole Company. The company uses straight-line depreciation and all depreciation was reported up to date as of the end of the previous year. As no specific asset details such as cost and accumulated depreciation are provided in the question, the entries can't be completely accurate. However, generally updated depreciation would be recorded before the disposal, and any gain or loss on the sale of the forklift would be recognized when the asset is sold.

• To record depreciation expense on the forklift up until the sale date.
• To record the sale of the forklift, including any gain or loss on sale.
• To write off any remaining book value of the truck upon its disposal.

Without specific figures, sample entries would be as follows:

1. Jan 1, 2025 - Machinery retired
2. Jun 30, 2025 - Forklift sold
3. Dec 31, 2025 - Truck discarded

Entries for each disposal would follow a similar structure:

1. Debit Accumulated Depreciation for total accumulated depreciation
2. Debit Loss on Sale (if applicable) or credit Gain on Sale (if applicable)
3. Credit the Asset account for its original cost
4. Credit Cash (for sale of forklift)