Here are selected transactions that occurred in 2022 for Custom Body and Paint
Corporation of Walnut Creek, California.
1/1/22 Retired a piece of equipment that was purchased on January 1, 2012.
The equipment cost $87,500 and had a useful life of 10 years with no
salvage value. Because the equipment had been purchased 10 years ago,
it was fully depreciated at the time it was retired.
6/30/22 Sold equipment for $19,000 cash that was purchased on January 1, 2020.
The equipment cost $60,000 and had a useful life of 4 years with no
salvage value. The accumulated depreciation up to December 31, 2021
was $30,000.
12/31/22 Sold equipment for $33,500 cash. The equipment cost $84,000 when it
was purchased on January 1, 2019. This equipment had a 5-year useful
life with a $9,000 salvage value. Accumulated depreciation through
December 31, 2021 was $45,000.
Required
Journalize all entries required on the above dates, including any necessary
adjusting entries to update depreciation on assets disposed of. Note: Custom Body
and Paint Corporation uses straight-line depreciation.