Presented here are selected transactions for Pine Company for 2014. Journalize a

Question

Presented here are selected transactions for Pine Company for 2014.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Pine Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2013.)

Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $70,100 on that date and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2011. The computer cost $25,300 and had a useful life of 5 years with no salvage value. The computer was sold for $10,120. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2009. The truck cost $44,000 and was depreciated based on an 8-year useful life with a $5,400 salvage value.

Explanation / Answer

Journal Entries:

Date Accounts Titles and explanation Debit $ Credit $ Jan 1, 2014 Accumulated Depreciation-Machinery 70100 Machinery Account 70100 (being retirement of the machinery) June 30, 2014 Depreciation - Computer 2530 Accumulated Depreciation-Computer 2530 Cash 10120 Accumulated Depreciation-Computer 17710 Computer 25300 Profit on sale of Computer 2530 (sale of computer) Dec 31, 2014 Depreciation-Delivery Truck 4825 Accumulated Depreciation-Delivery Truck 4825 Accumulated Depreciation-Delivery Truck 28950 Loss on discard of delivery truck 15050 Delivery Truck 44000

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