jan. 1 retired a piece of machinery that was purchased on january 1, 2017. the machine cost $61,900 and had…

jan. 1 retired a piece of machinery that was purchased on january 1, 2017. the machine cost $61,900 and had a useful life of 10 years with no salvage value. june 30 sold a computer that was purchased on january 1, 2025. the computer cost $36,400 and had a useful life of 4 years with no salvage value. the computer was sold for $4,800 cash. dec. 31 sold a delivery truck for $9,030 cash. the truck cost $23,500 when it was purchased on january 1, 2024, and was depreciated based on a 5 - year useful life with a $3,500 salvage value. prepare a tabular summary to record all transactions described on the above dates. update depreciation on assets disposed of, where applicable. blue corporation uses straight - line depreciation. (if a transaction causes a decrease in assets, liabilities or stockholders’ equity, place a negative sign (or parentheses) in front of the amount entered for the particular asset, liability or equity item that was reduced.) assets = liabilities + cash + equipment - accum. depr. - equip. = jan. 1 $ 0 $ -61900 $ 61900 $ june 30 0 0 0 4800 -36400 22750 dec. 31 0 0 0 9030 -23500

jan. 1 retired a piece of machinery that was purchased on january 1, 2017. the machine cost $61,900 and had a useful life of 10 years with no salvage value. june 30 sold a computer that was purchased on january 1, 2025. the computer cost $36,400 and had a useful life of 4 years with no salvage value. the computer was sold for $4,800 cash. dec. 31 sold a delivery truck for $9,030 cash. the truck cost $23,500 when it was purchased on january 1, 2024, and was depreciated based on a 5 - year useful life with a $3,500 salvage value. prepare a tabular summary to record all transactions described on the above dates. update depreciation on assets disposed of, where applicable. blue corporation uses straight - line depreciation. (if a transaction causes a decrease in assets, liabilities or stockholders’ equity, place a negative sign (or parentheses) in front of the amount entered for the particular asset, liability or equity item that was reduced.) assets = liabilities + cash + equipment - accum. depr. - equip. = jan. 1 $ 0 $ -61900 $ 61900 $ june 30 0 0 0 4800 -36400 22750 dec. 31 0 0 0 9030 -23500

Answer

Explanation:

Step1: Calculate depreciation for the computer

The computer has a cost of $36,400, useful - life of 4 years and no salvage value. The annual depreciation is $\frac{36400}{4}=9100$. From January 1, 2025 to June 30, 2025 (6 months or 0.5 years), the depreciation is $9100\times0.5 = 4550$. The accumulated depreciation at the time of sale is $4550$.

Step2: Calculate book - value of the computer at the time of sale

The book - value of the computer is the cost minus the accumulated depreciation. So, $36400 - 4550=31850$.

Step3: Calculate gain or loss on the sale of the computer

The computer is sold for $4800. The loss on the sale is $31850 - 4800 = 27050$.

Step4: Calculate depreciation for the delivery truck

The delivery truck has a cost of $23,500, a salvage value of $3,500 and a useful - life of 5 years. The annual depreciation is $\frac{23500 - 3500}{5}=4000$. From January 1, 2024 to December 31, 2024 (1 year), the depreciation is $4000$.

Step5: Calculate book - value of the delivery truck at the time of sale

The book - value of the delivery truck is $23500-(4000\times1)=19500$.

Step6: Calculate gain or loss on the sale of the delivery truck

The truck is sold for $9030. The loss on the sale is $19500 - 9030 = 10470$.

Date Cash Equipment Accum. Depr. - Equip.
Jan. 1 0 - 61900 61900
June 30 4800 - 36400 $4550$ (update)
Dec. 31 9030 - 23500 $4000$ (update)

Answer:

Date Cash Equipment Accum. Depr. - Equip.
Jan. 1 0 - 61900 61900
June 30 4800 - 36400 4550
Dec. 31 9030 - 23500 4000