Assignment Problem: Pine Company had the following assets on January 1, 2017.
|
Item
|
Cost
|
Purchase Date
|
Useful Life (in years)
|
Salvage Value
|
|
Machinery
|
$71,000
|
Jan. 1, 2007
|
10
|
$-0-
|
|
Forklift
|
30,000
|
Jan. 1, 2014
|
5
|
-0-
|
|
Truck
|
33,400
|
Jan. 1, 2012
|
8
|
3,000
|
During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,000. The truck was discarded on December 31.
Instructions: Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016.
Record property, plant, and equipment transactions; prepare partial balance sheet.