Question

Here are selected 2017 transactions of Marigold Corporation.

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $63,000 and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2015. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $6,000 cash.
Dec. 31 Sold a delivery truck for $9,130 cash. The truck cost $24,500 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,400 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Marigold 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Date Jan. 1 Accumulated Depreciation-Equipment 63000 Equipment 63000 June 30 Depreciation Expense 4625 Accumulated Depreciation-Equipment 4625 (To record depreciation expense for 2017) Cash 6000 Accumulated Depreciation-Equipment 23125 Accumulated Depreciation- Equipment 4625 (To record depreciation expense for 2017) Cash 6000 Accumulated Depreciation-Equipment 23125 Loss on Disposal of Plant Assets 7875 Equipment 37000 (To record sale of computer) Dec. 31 Depreciation Expense 5275 Accumulated Depreciation-Equipment 5275 (To record depreciation expense for 2017) 9130 Cash Accumulated Depreciation-Equipment 12250 Equipment 24500 Gain on Disposal of Plant Assets (To record sale of delivery truck)

Answer 1

Date Account and Explanation Debit$ Credit$

Jan 1 Accumulated depreciation-Machine 63000

Machine 6300

June 30 Depreciation expense (37000/4)*6/12 4625

Accumulated depreciation-Computer 4625

(To record Dep)

June 30 Cash 6000

Accumulated depreciation-Computer 23125

(37000/4*2.5)

Loss on sale of computer 7875

Computer 37000

(To record sale of computer)

Dec 31 Depreciation expense (24500-3400/5) 4220

Accumulated depreciation-Delivery truck 4220

(To record Dep)

Dec 31 Cash 9130

Accumulated depreciation-Truck 16880

(24500-3400/5*4)

Gain on sale of delivery truck 1510

Delivery truck 24500

(To record sale of computer)