Assume that Gonzalez. Company purchased an equipment on Jaruary 1.2014. for $126,000. The equipment had an estimated sife of sic years and an estimased residual value of 512 , 600. The compary used the straight tine method to depreciate the oquipment. On July 1. 2016, the equipment was sold for s81.900. Required: 1. Make the joumal entry to record depreciation on the equipment through Juy 1,2016. Record the sale of the assef on July 1.2016. 2. How should the gain or loss on the sale of the asser be presented on the income atatement? \begin{tabular}{|l|l|l|} Instructions & Chart of Accounts I General Journal I Final Question \end{tabular} Instructions Chart of Accounts As CHART OF ACCOUNTS Gonzalez Company General Ledger ASSETS REVENUE 111 Cash 411. Sales Revenue 121 Accounts Receivable 491 Gain on Salo of Asset 141 Inventory 152 Prepaid Insurance EXPENSES 154 Supplies 500 Cost of Goods Sold 174 Equipment 521 Salaries and Wages Expense 177 Arrumulated Ronrociation 532 Utilities Expense Instructions \begin{tabular}{|ll} As Chart of Accounts & \\ 152 Prepaid Insurance & EXPENSES \\ 154 Supplies & 500 Cost of Goods Sold \\ 174 Equipment & 521 Salaries and Wages Expense \\ 177 Accumulated Depreciation & 532 Utilities Expense \\ & 533 Insurance Expense \\ 211 Accounts Payable & 534 Rent Expense \\ 231 Salaries and Wages Payable & 537 Supplies Expense \\ 235 Notes Payable & 551 Advertising Expense \\ 261 Income Taxes Payable & 559 Miscellaneous Expenses \\ EITIES & 810 Interest Expense \\ EQUITY & 910 Income Tax Expense \\ \hline \end{tabular} Instructions Chart of Accounts As: jov insurarice Expense LIABILITIES 534 Rent Expense 211 Accounts Payable 537 Supplies Expense 231 Salaries and Wages Payable 541 Depreciation Expense 235 Notes Payable 551 Advertising Expense 261 Income Taxes Payable 559 Miscellaneous Expenses 810 Interest Expense EQUITY 910 Income Tax Expense 311 Capital Stock 331 Retained Eamings Asset Disposal instruetions Chart of Accountsi General Journal I Final oucution General Journal Shaded colls hrivo foodback GENERAL JOUPCAL Score: 0/103 INPACT ON FINAMCIAL STATEUENTS BALANCE SHEET HEOME STATE DNTE ACcouki inf post aEF beair 1 Check My Wor Depreciation journal erfry: Recorit depreciation for 6 monithe updating for tave of asset Record sale. absocivied Accumutaled Deprociafion accourt