Presented below are selected transactions at thomas company for 2006. Jan1st - Retired a piece of machinery that was purchased on Jan 1st 1996. The machine cost 62,000 on that date. It had a useful life of 10 years with no salvage value. June30th - Sold a computer that was purchased on Jan 1st 2003. The computer cost 35,000. It had a useful life of 5 years with no salvage value. The computer sold for 12,000. DEC31st - Discarded a delivery truck that was purchased on Jan1st 2002. The truck cost 33,000. It was depreciated based on a 6 year useful life with a 3,000 salvage value.
INSTRUCTIONS: Journalize all entries required on the abouve dates, including entries to update depreciation, where applicable, on assets disposed of. Thomas Company uses straight-line depreciation. (Assume depreciation is uo to date as of Dec 31 2005.