Question

Here are selected 2017 transactions of Novak Corporation.

Jan. 1		Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,400 and had a useful life of 10 years with no salvage value.
June 30		Sold a computer that was purchased on January 1, 2015. The computer cost $35,600 and had a useful life of 4 years with no salvage value. The computer was sold for $4,700 cash.
Dec. 31		Sold a delivery truck for $9,500 cash. The truck cost $24,100 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,300 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Novak 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	Title	Debit	Credit
Jan-01	Accumulated depreciation - Machinery	$ 61,400
	Machinery		$ 61,400
	(To record disposal of machinery)
Jun-30	Depreciation expenses ($35,600 / 4 * 6/12)	$    4,450
	Accumulated depreciation - Computer		$    4,450
	(To record depreciation upto June 30)
	Cash	$    4,700
	Accumulated depreciation - Computer (($35,600/4*2)+$4,450)	$ 22,250
	Loss on sale of assets	$    8,650
	Computer		$ 35,600
	(To record sale of computer)
Dec-31	Depreciation expense (($24,100 -$3,300)/5*1)	$    4,160
	Accumulated depreciation - Truck		$    4,160
	(To record depreciation for the year)
	Cash	$    9,500
	Accumulated depreciation - Truck (($24,100 -$3,300)/5*3)+$4,160)	$ 16,640
	Truck		$ 24,100
	Gain on sale of asset		$    2,040
	(To record sale of assets)

You can reach me over comment box if you have any doubts. Please rate this answer