Question

Exercise 9-10 Here are selected 2022 transactions of Ayayai Corporation. Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61,000 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on 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. Dec. 31 Sold a delivery truck for $9,000 cash. 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. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Ayayai 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 o for the amounts.) Date Account Titles and Explanation (Te record depec expense) To record sale of computer) (Te red sale of delivery truck)

Answer 1

Credit Debit $ 61,000 Date Account Titles and Explanation Jan-01 Accumulated depreciation-Eequipment Equipment (To record the retirment of equipment) $ 61,000 $ 4,375 Jun 30 Depreciation expense ($35,000/4*1/2) Accumulated depreciation Equipment (To record the depreciation expense for 6 months) $ 4,375 Jun-30 Cash Accumulated depreciation Equipment $35,000/4*2.5 years) Loss on disposal of plant assets Equipment (To record sale of equipment) $ 4,000 $ 21,875 $ 9,125 $ 35,000 $ 3,960 Dec-31 Depreciation expense [($23,000-3,200)/5] Accumulated depreciation Equipment (To record the depreciation expense) $ 3,960 $ 9,000 $ 15,840 Dec-31 Cash Accumulated depreciation equipment [($23,000-$3,200)/5*4) Equipment Gain on disposal of plant assets (To record the sale of equipment) $ $ 23,000 1,840