Presented below are selected transactions at Ingles Company for 2017.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost £58,000 on that date. It had a useful life of 10 years with no residual value.
June 30 Sold a computer that was purchased on January 1, 2014. The computer cost £40,000. It had a useful life of 5 years with no residual value. The computer was sold for £14,600.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2013. The truck cost £34,000. It was depreciated based on a 6-year useful life with a £4,000 residual value.
Instructions
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2016.)