ACC 363E10-6 Thomas CompanyAxia College of University of Phoenix (UoP)Financial

ACC 363E10-6 Thomas CompanyAxia College of University of Phoenix (UoP)Financial Accounting: Weygandt Kieso and Kimmel 5th EditionFinancial Accounting IIExercise E10-6 Journalize entries for disposal of plant assets.E10-6 Presented below are selected transactions at Thomas Company for 2006.Jan. 1 Retired a piece of machinery that was purchased on January 1 1996. The machine cost $62000 on that date. It had a useful life of 10 years with no salvage value.June 30 Sold a computer that was purchased on January 1 2003.The computer cost $35000. It had a useful life of 5 years with no salvage value. The computer was sold for $12000.Dec. 31 Discarded a delivery truck that was purchased on January 1 2002. The truck cost $33000. It was depreciated based on a 6-year useful life with a $3000 salvage value.InstructionsJournalize all entries required on the above dates including entries to update depreciation whereapplicable on assets disposed of. Thomas Company uses straight-line depreciation. (Assumedepreciation is up to date as of December 31 2005.)