Presented below are selected transactions at Ingles Company for 2008.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 1998. The machine cost $66,794 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2005. The computer cost $44,802. It had a useful life of 5 years with no salvage value. The computer was sold for $18,695.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2004. The truck cost $40,700. It was depreciated based on a 6-year useful life with a $4,500 salvage 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, 2007.) (Record the entries to update depreciation first. For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.)