Here are selected 2017 transactions of Swifty Corporation Ja

Here are selected 2017 transactions of Swifty Corporation Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,300 and had a useful life of 10 years with no salvage value. June Sold a computer that was purchased on January 1, 2015. The computer cost $35,200 and had a useful life of 4 years with no salvage value. The computer 30 Dec. Sold a delivery truck for $9,500 cash. The truck cost $23,000 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life 31 was sold for $5,700 cash. with a $4,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Swifty 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.) Date Account Titles and Explanation Debit Credit To record depreciation expense for 2017)

Solution

Journal entries: Date Accounts Title and xplanations Debit $ Credit $ 1-Jan Accumulated depreciation Account Dr. 61300      Machinery Account 61300 30-Jun Depreciation expense Account Dr. 4400    Accumulated depreciation Account 4400 (35200/4 *6/12) Cash account Dr. 5700 Accumulated depreciation (8800*2.5) 22000 Loss on sale of machinery Account Dr. 7300       Machinery Account 35200 31-Dec Depreciation Account Dr. 3800     Accumulated depreciation Account 3800 (23000-4000)/5 Cash account Dr. 9500 Accumulated depreciation Dr. (3800*4) 15200      Truck Equipment Account 23000       Gain on sale of Equipment 1700