Question

Oriole Company had the following assets on January 1, 2022.

Item		Cost		Purchase Date		Useful Life (in years)		Salvage Value
Machinery		$62,000		Jan. 1, 2012		10		$ 0
Forklift		21,000		Jan. 1, 2019		5		0
Truck		27,400		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 $11,100. 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, 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 0 for the amounts.)

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 expense on forklift	enter a debit amount	enter a credit amount
	enter an account title to record depreciation expense on forklift	enter a debit amount	enter a credit amount
	(To record depreciation expense on forklift)
choose a transaction date

enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	(To record sale of forklift)
choose a transaction date

enter an account title to record depreciation expense on truck	enter a debit amount	enter a credit amount
	enter an account title to record depreciation expense on truck	enter a debit amount	enter a credit amount
	(To record depreciation expense on truck)
choose a transaction date

enter an account title to record sale of truck on December 31	enter a debit amount	enter a credit amount
	enter an account title to record sale of truck on December 31	enter a debit amount	enter a credit amount
	enter an account title to record sale of truck on December 31	enter a debit amount	enter a credit amount

Answer 1

Date	Account titles and explanation	Debit	Credit
Jan 1	Accumulated depreciation- Machinery	$62000
	Machinery		$62000
	(To record sale of machinery)
Jun 30	Depreciation expense (21000/5*6/12)	$2100
	Accumulated depreciation- Forklift		$2100
	(To record depreciation expense on forklift)
Jun 30	Cash	$11100
	Accumulated depreciation- Forklift (21000*3/5+2100)	$14700
	Gain on disposal of forklift (11100+14700-21000)		$4800
	Forklift		$21000
	(To record sale of forklift)
Dec 31	Depreciation expense (27400-3000)/8	$3050
	Accumulated depreciation- Truck		$3050
	(To record depreciation expense on truck)
Dec 31	Accumulated depreciation- Truck(27400-3000)/8*5	$15250
	Loss on disposal of truck(27400-15250)	$12150
	Truck		$27400
	(To record sale of truck)