Exercise 10-9

Partially correct answer. Your answer is partially correct. Try again. Presented below are selected transactions at Ridge Company for 2017. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,400 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, 2014. The computer cost $42,900. It had a useful life of 5 years with no salvage value. The computer was sold for $15,100.

Dec. 31 Discarded a delivery truck that was purchased on January 1, 2013. The truck cost $35,340. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ridge Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2016