Presented here are selected transactions for Snow Company for 2012.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2002. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2009. The computer cost $30,000 and had a useful life of 5 years with no salvage value. The computer was sold for $12,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2007. The truck cost $33,400 and was depreciated based on an 8-year useful life with a $3,000 salvage value.
Instructions
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Snow Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2011.)