Question

Exercise 9-8 Here are selected 2017 transactions of Pronghorn Corporation Jan 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,000 and had a useful life of 10 years with no salvage value June Sold a computer that was purchased on January 1, 2015. The computer cost $35,400 and had a useful life of 4 years with no salvage value. The 30 computer was sold for $5,600 cash. Dec Sold a delivery truck for $9,280 cash. The truck cost $25,000 when it was purchased on January 1, 2014, and was depreciated based on a 5-year 31 useful life with a $3,700 salvage value. Joumalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Pronghorn 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 Debit Credit (To record depreciation expertise for 2017)

Answer 1

Please do rate this.Thanks

The journal entries are as below:
Date	Account titles and explanation	Debit	Credit
1-Jan	Accumulated Depreciation	$62,000.00
	Machinery		$62,000.00
	(Being machinery written off)
30-Jun	Depreciation-Computer	$4,425.00
	Accumulated Depreciation-Computer		$4,425.00
	(To record depreciation for 2017)
30-Jun	Cash	$5,600.00
	Accumulated Depreciation-Computer(35400/4)*2.5	$22,125.00
	Loss on sale of asset	$7,675.00
	Computer		$35,400.00
	(Being sale of computer recorded)
31-Dec	Depreciation-Truck	$4,260.00
	Accumulated Depreciation-Truck		$4,260.00
	(To record deprectiation for 2017)
31-Dec	Cash	$9,280.00
	Accumulated Depreciation-Truck(4260*4)	$17,040.00
	Truck		$25,000.00
	Gain on sale of asset		$1320.00
	(Being sale of truck recorded)
Note:
1. Depreciation on computer = $35400/ 4 * 1/2 = $6000
2. Depreciation on Truck = ($25000 - $3700) / 5 = $4260

if any doubt please mention in comment