Here are selected 2022 transactions of Ayayai Company.
Jan.
1
Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $60,000 and had a useful life
of 10 years with no salvage value.
June 30
Sold a computer that was purchased on January 1, 2019. The computer cost $35,000 and had a useful life of 5 years
with no salvage value. The computer was sold for $13,000 cash.
Dec. 31
Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $33,000. It was depreciated based
on a 6-year useful life with a $3,000 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable.
Ayayai Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries
before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually, Record journal entries in
the order presented in the problem. 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
Jan. 1
Accumulated Depreciation-Equipment
60,000
Equipment
60,000
(To record retirement of machinery)
June 30
Depreciation Expense
87,500
Accumulated Depreciation-Equipment
87,500
