Plessis Company owns equipment that cost $65,000 when purchased on January 2, 2017. It has been depreciated using the straight-line method based on estimated residual value of $5,000 and an estimated useful life of five years.
Instructions
Prepare Plessis Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $31,000 on January 2, 2020
(b) Sold for $31,000 on May 1, 2020
(c) Sold for $11,000 on January 2, 2020
(d) Sold for $11,000 on October 1, 2020