Problem:
Show the journal entries for the following, including any entries to depreciation to update through date of disposal. Assume straight-line method and that depreciation was last recorded on Dec 31, 2013.
Jan 1, 2014: Tomas Company disposed of a piece of machinery that was purchased on January 1, 2004 . The machine cost $60,450 with a useful life of 10 years and no salvage value.
June 30, 2014: Sold a computer for $13,610 bought on January 1, 2011. The computer cost $35,940 with a useful life of 5 years and no salvage value.
Dec. 31 2014: Disposed of a delivery truck that was purchased on January 1, 2010 that originally cost $34,960 and was depreciated with a 6-year useful life and salvage value of $2,080.