Here are selected 2017 transactions of Indigo Corporation.
| Jan. 1 | Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $61,800 and had a useful life of 10 years with no salvage value. | |
| June 30 | Sold a computer that was purchased on January 1, 2015. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $4,000 cash. | |
| Dec. 31 | Sold a delivery truck for $9,380 cash. The truck cost $23,600 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $3,200 salvage value. |
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Indigo Corporation uses straight-line depreciation
| Date | Description | Debit $ | Credit $ |
| 1-Jan | Accumulated depreciation | 61800 | |
| Machine asset | 61800 | ||
| (being Entry for Retired a piece of machinery at the 10 year end) |
|||
| 30-Jun | Cash | 4000 | |
| Accumulated depreciation | 23125 | ||
| Loss on sale of Machinary | 9875 | ||
| Computer asset | 37000 | ||
| 31-Dec | Cash | 9380 | |
| Accumulated depreciation | 16320 | ||
| Gain on sale of Machinary | -2100 | ||
| Truck asset | 23600 |
Working notes
| Compute | |
| January 1-2007 | |
| Machine cost | 37000 |
| Life | 4 year |
| Depriciation Per year | 9250 |
| Depriciation till June-30-2017 | |
| 2015 | 9250 |
| 2016 | 9250 |
| 2017 | 4625 |
| 23125 | |
| Truck | |
| January 1-2007 | |
| Machine cost | 23600 |
| Salvage | 3200 |
| Life | year |
| Depriciation Per year | 4080 |
| Depriciation till June-30-2017 | |
| 2014 | 4080 |
| 2015 | 4080 |
| 2016 | 4080 |
| 2017 | 4080 |
| 16320 |
