Question

Exercise 9-9 Your answer is partially correct. Try again Presented below are selected transactions at Skysong, Inc. for 2019. Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $60,000 on that date. It had a useful life of 10 years with no salvage value. Jan 1 Sold a computer that was purchased on January 1, 2016. The computer cost $36,600. It had a useful life of 5 years with no salvage value. The computer was sold for $13,300 June 30 Discarded a delivery truck that was purchased on January 1, 2015. The truck cost $35,160. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Dec. 31 Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Skysong, Inc. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2018.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations.) Account Titles and Explanation Debit Credit Date 60000 Accumulated Depreciation-Equipment Jan. 1 60000 Equipment Depreciation Expense 3660 June 30 3660 Accumulated Depreciation-Equipment (To record depreciation to date of disposal) June 30 13300 Cash 18300 Accumulated Depreciation-Equipment

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Jan	Accumulated depreciation-Equipment					60,000
	Equipment						60,000
30-Jun	Depreciation expense					3660
	Accumulated depreciation-Equipment						3660
	Cash					13,300
	Accumulated depreciation-Equipment					25620
	Gain on disposal of plant assets						2,320
	Equipment						36,600
31-Dec	Depreciation expense					5360
	Accumulated depreciation-Equipment						5360
	Accumulated depreciation-Equipment					26800
	loss on disposal of plant assets					8,360
	Equipment						35,160