Question

Ayayai Corporation purchased Problem 9-09A machinery on January 1, 2022, at a cost of $252,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Here are selected 2022 transactions of Ayayai Corporation. Retired a piece of machinery that was Jan. 1 purchased on January 1, 2012. The machine cost $61,000 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on June 30 January 1, 2020. The computer cost $35,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,000 cash. Sold a delivery truck for $9,000 cash. Dec. 31 The truck cost $23,000 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,200 salvage value. DE S

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Jan	Accumulated depreciation-Equipment					61,000
	Equipment						61,000
30-Jun	Depreciation expense					4375
	Accumulated depreciation-Equipment						4375
	Cash					4,000
	Accumulated depreciation-Equipment					21875
	loss on disposal of plant assets					9,125
	Equipment						35,000
31-Dec	Depreciation expense					3960
	Accumulated depreciation-Equipment						3960
	cash					9,000
	Accumulated depreciation-Equipment					15840
	gain on disposal of plant assets						1,840
	Equipment						23,000