Question

Here are selected 2022 transactions of Sarasota Corporation.

Jan. 1		Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61,500 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 $36,400 and had a useful life of 4 years with no salvage value. The computer was sold for $4,100 cash.
Dec. 31		Sold a delivery truck for $9,300 cash. The truck cost $24,600 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,700 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Sarasota 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

Date	Account title	Debit	credit
1 Jan 2022	Accumulated depreciation-Machinery	61500
	Machinery		61500
	[Being machinery retired]
June 30	Depreciation expense	4550
	Accumulated depreciation -computer		4550
June 30	Cash	4100
	Accumulated depreciation -computer	22750
	loss on sale of computer (residual figure)	13650
	Computer		36400
31 Dec	Depreciation expense	4180
	Accumulated depreciation -Delivery truck		4180
31 Dec	cash	9300
	Accumulated depreciation -Delivery truck	16720
	Gain on sale of delivery truck (residual figure)		1420
	Delivery truck		24600

#Depreciation expense = [Cost-salvage value ]/useful life

Computer : [36400-0]/4

            = 9100 per Year

Depreciation for 2022 (1Jan -30June) =9100*6/12= 4550

Accumulated depreciation till date = (1 Jan 2020 -30 June 2022 ) =9100+9100+4550= 22750

#Delivery truck : [24600-3700]/5

             = 4180 per year

Accumulated depreciation ( 1Jan 2019- 31Dec 2022) =4180 *4 years= 16720