Sheridan Company had the following assets on January 1, 2017. Item Cost...
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Accounting
Sheridan Company had the following assets on January 1, 2017.
Item
Cost
Purchase Date
Years
Salvage Value
Machinery
$78,100
Jan. 1,2007
10
0
Forklift
$33,000
Jan. 1, 2014
5
0
Truck
$36,744
Jan. 1, 2012
8
$3,304
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 $13,200. The truck was discarded on December 31. 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit Jan. 1 Accumulated Depreciation-Equipment 78100 Equipment 78100 June 30Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on forklift) June 30 cash 13200 Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets (To record sale of forklift)
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