ASSET DISPOSALS--Retirement, Gains, Losses
ASSETS LIABILITIES STOCKHOLDERS' EQUITY
Cash Common Stock
   
   
 
Retained Earnings
 
Land Operations  
15,000        
  Expenses… Service Revenue
       
     
Buildings Accumulated Depr.--Bldg.    
1/1/2010 90,000   Loss on Disposal Gain on Disposal
         
         
       
Equipment Accumulated Depr. Equip.
1/1/2010 40,000  
   
   
The building is depreciated SL, over a 30 year life, no salvage.
The equipment is depreciated SL over 10 years, no salvage ($4,000 per year).
Depreciation is recorded every year on 12/31.
Make a journal entry for each of the following independent situations.
1 The Equipment is retired after 10 years of use.
2 The Equipment is retired after 8 years of use.
3 The Equipment is sold on 12/31/15 for $24,000.
4 The Equipment is sold on 12/31/15 for $12,000.
5 The Equipment is sold on 7/1/14 for $15,000.  Record depreciation for a partial year.