Answer:
dep expense 4,450 debit
acc depreciation computer 4,450 credit
to record depreciation for the computer
cash 4,700 debit
acc depreciation 22,250 debit
loss on disposal 9,250 debit
computer 35,600 credit
to record sale of computer
dep expense 4,160 debit
acc depreciation truck 4,160 credit
to record depreciation expense for the truck 2017
cash 9,500
acc depreication 16,640
gain on disposal 2,040
truck 24,100
to record sale of a truck
Explanation:
Computer:
35,600 / 4 = 8,900 depreciation per year
depreciation for 2017
january to june 30th --> half a year so half depreciation
8,900 / 2 = 4,450
then we do the sale of the computer
acc depreciation
from jan 1st 2015 to june 30th 2017
2 and a half year
8,900 + 8,900 + 4,450 = $22,250.00
book value 35,600 - 22,250 = 13,350
proceeds 4,700
loss on disposal 9,250
truck
Acquisition Value 24100
Salvage Value 3300
ammount subject to depreciation 20800
Useful Life 5
depreciation per year 4160
We need to do the entry for the depreication for the year.
Then we calcualte the gain/loss on disposal
accumualted from jan 2014 to dec 31th 2017
4 years
4,160 x 4 = 16,640
book value 24.100 - 16,640 = 7,460
proceeds 9,500
gain on disposal 2040
