Question

Current Attempt in Progress Sandhill Co. had the following assets on January 1, 2022. Item Machinery Forklift Truck Cost $67,000 26,000 32.400 Salvage Value $0 Useful Life (in years) 10 5 8 Purchase Date Jan 1, 2012 Jan 1, 2019 Jan 1, 2017 0 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 $11,600. 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.)

Answer 1

Answer
Journal Entry
Date	Account titles and explanation	Debit	Credit
Jan 1,2022	Accumulated Depreciation	$       67,000
	To, Machinery		$       67,000
	(To machinery retired on Jan 1)
June 30,2022	Depreciation expenses($5200*6/12)	$         2,600
	To, Accumulated Depreciation($5200*6/12)		$         2,600
	(To depreciation charged for 6 months)
June 30,2022	Cash (5200*3)	$       15,600
	Accumulated Depreciation	$       13,000
	To, Gain on isposal of Forklift		$         2,600
	To, Forklift		$       26,000
	(To Forklift disposed with profit)
Dec 31,2022	Depreciation expenses (32400-3000)/8	$         3,675
	To, Accumulated Depreciation		$         3,675
	(To depreciation charged for year)
Dec 31,2022	Accumulated Depreciation	$       22,050
	Loss on retiremnt	$       10,350
	To, Truck		$       32,400
	(To record sale of truck)

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