Presented Below Are Selected Transactions for the Tinker Company for 2015

question 246

Essay

Presented below are selected transactions for the Tinker Company for 2015.
Jan. 1 Retired a piece of equipment that was purchased on January 1, 2005. The equipment cost $75,000 on that date, and had a useful life of 10 years with no salvage value.
April 30 Sold equipment for $38,000 that was purchased on January 1, 2012. The equipment cost $105,000, and had a useful life of 5 years with no salvage value.
Dec. 31 Discarded equipment that was purchased on June 30, 2011. The equipment cost $42,000 and was depreciated on a 5-year useful life with a salvage value of $2,000.
Instructions
Journalize all entries required as a result of the above transactions. Tinker Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2014.

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Definitions:

FERPA

The Family Educational Rights and Privacy Act, a federal law that protects the privacy of student education records.

Federal Law

Federal law consists of rules and regulations that are enacted by the national government and applicable throughout the country.

Placement Site

The specific location where an individual is assigned to work, study, or perform duties as part of a program or job.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual, guiding its decisions and actions.