Question

Sunland Company had the following assets on January 1, 2022. Useful Life Item Cost Purchase Date (in years) Salvage Value Machinery $65,000 Jan. 1, 2012 10 $0 Forklift 24,000 Jan. 1, 2019 5 Truck 30,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,400. The truck was discarded on December 31 Journalize all entries required on the above dates, incžuding 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, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 + Accumulated Depreciation-Equipment 65000 65000 Equipment 3000 June 30 Depreciation Expense 3000 Accumulated Depreciation-Equipment (To record depreciation expense on forklift)

Answer 1

Journal entry

Date	account and explanation	Debit	credit
Jan 1	Accumulated depreciation-equipment	65000
	Equipment		65000
June 30	Depreciation expense (24000/5)*6/12	2400
	Accumulated depreciation-equipment		2400
June 30	Cash	11400
	Accumulated depreciation-equipment	16800
	Gain on sale of equipment		4200
	Equipment		24000
Dec 31	Depreciation expense	3425
	Accumulated depreciation-equipment		3425
Dec 31	Accumulated depreciation-equipment	20550
	Loss on disposal of equipment	9850
	Equipment		30400