Presented below are selected transactions at Kirke Company for 2012.
|
Jan. |
1 |
Retired a piece of machinery that was purchased on January 1, 2002. The machine cost |
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$62,000 on that date. It had a useful life of 10 years with no salvage value. |
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|
June |
30 |
Sold a computer that was purchased on January 1, 2009. The computer cost $40,000. It |
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had a useful life of 5 years with no salvage value. The computer was sold for $14,000. |
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|
Dec. |
31 |
Discarded a delivery truck that was purchased on January 1, 2008. The truck cost |
|
$39,000. It was depreciated based on a 6 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. Kirke Company uses straight line depreciation.