Reference no: EM1356992
Presented here are selected transactions for Lulu Corporation for 2010.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2000. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2007. The computer cost $30,000 and had a useful life of 5 years with no salvage value. The computer was sold for $10,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2005. The truck cost $31,000 and was depreciated based on an 8-year useful life with a $3,000 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Sager Corporation uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2009.) (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
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