Question

Here are selected 2022 transactions of Ayayai Corporation.

Jan. 1		Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61,000 and had a useful life of 10 years with no salvage value.
June 30		Sold a computer that was purchased on January 1, 2020. The computer cost $35,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,000 cash.
Dec. 31		Sold a delivery truck for $9,000 cash. The truck cost $23,000 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,200 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Ayayai 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 0 for the amounts.)

Answer 1

Answer
Journal entries
Date	Accounts title and expplanations				Debit	Credit
01-Jan	Accumulated depreciation				$      61,000
	Machinery					$      61,000
30-Jun	Depreciation expenses				$        4,375
	Accumulated dep-Computer equipment					$        4,375
			(35000-0)/4 * 0.5
30-Jun	Accumulated dep-Computer Equipment (8750*2.5)				$      21,875
	Loss on sale of Equipment				$        9,125
	Cash account				$        4,000
	Computer Equipment					$      35,000
31-Dec	Depreciation expenses				$        3,960
	Accumulated depreciation-Delivery truck					$        3,960
			(23000-3200)/5
31-Dec	Accumulated dep - Delivery truck (23000-3200)*4/5				$      15,840
	Cash account				$        9,000
	Delivery Equipment					$      23,000
	Gain on sale of Equipment					$        1,840