Question

I need help with the calculations please

Presented below are selected transactions at Whispering Winds Corp. for 2019. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $61,300 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2016. The computer cost $36,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2015. The truck cost $36,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Whispering Winds Corp. 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 Ofor the amounts. Do not round intermediate calculations.) Date Account Titles and Explanation Debit Credit (To record depreciation to date of disposal) June 30 (To record sale of computer) (To record depreciation to date of disposal) Dec. 31 (To record retirement of truck)

Answer 1

Answer:

Date	Account title and explanation	Debit	Credit
Jan.1	Accumulated depreciation-Machinery	$61,300
	Machinery		$61,300
	[To record retirement of a piece of machinery]
Jan.1	No Entry*
June 30	Cash	$14,000
	Accumulated depreciation-computer [(36,000/5 years) x 3.5 years]	$25,200
	Computer		$36,000
	Gain on sale of computer		$3,200
	[To record sale of computer]
June 30	Depreciation expense [(36,000/5 years) x 0.5 years]	$3,600
	Accumulated depreciation-computer		$3,600
	[To record depreciation to date of disposal]
Dec.31	Cash	$3,000
	Accumulated depreciation-truck**	$33,000
	Truck		$36,000
	[To record retirement of truck]

Calculations:

*No entry for depreciation on Jan.1 because total depreciation calculated till Dec 31,2018

** Total depreciation of truck = Cost - Salvage value = $36,000 - $3,000 = $33,000

For June 30,

Total Accumulated depreciation to be calculated for 3.5 years (Jan.1,2016 to June 30,2019).

Depreciation for 2019 to be calculated for 0.5 years (Jan.1,2019 to June 30,2019)