Question

Problem 9-03A Your answer is partially correct. Try again. Crane Company had the following assets on January 1, 2022. Cost Useful Life (in years) 10 Salvage Value $ 0 Item Machinery Forklift Truck $70,000 29,000 35,400 Purchase Date Jan. 1, 2012 Jan. 1, 2019 Jan. 1, 2017 5 0 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,900. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the 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 Jan. 1 Accumulated Depreciation Equipment 70000 Equipment 70000 June 30 v Depreciation Expense 2900 Accumulated Depreciation Equipment 2900 (To record depreciation expense on forklift)

Answer 1

Date	Account and explanation	Debit	Credit
Jan 1, 2022	Accumulated Depreciation	70000
	Machinery		70000
	(To machinery retired on Jan 1)
June 30, 2022	Depreciation expenses (29,000/5)*(6/12)	2900
	Accumulated Depreciation		2900
	(To depreciation charged for 6 months)
June 30, 2022	Cash	11900
	Accumulated Depreciation (29,000/5) *3.5	20300
	Gain on disposal of Forklift {11900-(29000-20300)}		3200
	Forklift		29000
	(To Forklift disposed of with profit)
Dec 31, 2022	Depreciation expenses (35400-3000)/8	4050
	Accumulated Depreciation		4050
	(To depreciation charged for the year)
Dec 31, 2022	Accumulated Depreciation (35400-3000)6/8	24300
	Loss on retirement	11,100
	Truck		35400
	(To record sale of the truck)