Thompson Co - entries for retired and sold assets
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Below are transactions at Thomas Co. for 2006.
Jan.1 Retired a piece of machinery that was purchased on Jan. 1 1996. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on Jan 1, 2003. The computer cost $35,000. It had a useful life of 5 yrs. with no salvage value. The computer was sold for $12,000.
Dec 31 Discarded a delivery truck that was purchased on Jan 1, 2002. The truck cost $33,000. It was depreciated based on a 6 yr. 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. Thomas Co. uses straight line depreciation.(assume depreciation is up to date as of Dec.31,2005)
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Thompson Company
2005 Debit Credit
1-Jan Retired Assets $6,200
Accumulated Depreciation $55,800
Equipment $62,000
To record the retirement of an asset used in operations. Asset was purchased 1-1-95 with a 10 yr ...
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