Question

Sandhill Co. had the following assets on January 1, 2017. Useful Life (in years) Item Cost Purchase Date Salvage Value Machinery $65,320 Jan 1, 2007 10 $0 Forklift 27,600 Jan. 1, 2014 5 0 Truck 30,728 Jan. 1, 2012 2,760 During 2017, each of the assets was removed from service. The machinery was retir $11,040. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depre company uses straight-line depreciation. All depreciation was up to date as of Decem indented when the amount is entered. Do not indent manually. If no entry is required, seleci amounts.)

Answer 1

Date	Account and explanation	Debit	Credit
Jan-01	Accumulated Depreciation-Machinery	$65,320
	Machinery		$65,320
	(To machinery retired on Jan 1)
Jun-30	Depreciation expenses-Forklift($5,520*6/12)	$2,760
	Accumulated Depreciation-Forklift($5,520*6/12)		$2,760
	(To depreciation charged for 6 months for 2017)
Jun-30	Cash	$11,040
	Accumulated Depreciation($5,520*3 + $2,760)	$19,320
	Gain on disposal of Forklift		$2,760
	Forklift		$27,600
	(To Forklift disposed with loss)
Dec-31	Depreciation expenses-Truck[($30,728-$2,760)/8]	$3,496
	Accumulated Depreciation-Truck		$3,496
	(To depreciation charged for year)
Dec-31	Accumulated Depreciation($3,496*6)	$20,976
	Loss on disposal of truck	$9,752
	Truck
	(To record sale of truck in loss)		$30,728