Question

Problem 9-03A

Sunland Company had the following assets on January 1, 2022.

Item   Cost   Purchase Date   Useful Life
(in years)
  Salvage Value
Machinery
  $77,000   Jan. 1, 2012   10   $ 0
Forklift
  36,000   Jan. 1, 2019   5   0
Truck
  42,400   Jan. 1, 2017   8   3,000

During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,600. The truck was discarded on December 31.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the 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
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title
 
enter a debit amount
 
enter a credit amount
 
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record depreciation expense on forklift
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record depreciation expense on forklift
 
enter a debit amount
 
enter a credit amount
 
  (To record depreciation expense on forklift)    
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of forklift on June 30
 
enter a debit amount
 
enter a credit amount
 
  (To record sale of forklift)    
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record depreciation expense on truck
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record depreciation expense on truck
 
enter a debit amount
 
enter a credit amount
 
  (To record depreciation expense on truck)    
choose a transaction date
 Jan. 1June 30Dec. 31
enter an account title to record sale of truck on December 31
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of truck on December 31
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record sale of truck on December 31
 
enter a debit amount
 
enter a credit amount
 
  (To record sale of truck)
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