assume that Gonzalez company purchased NASA on January 1, 2015 through 75,400. but as it had an estimated life six years and estimated residential value of 7540. The company is the straight-line method to depreciate the acid. On July 1, 2017 as it was sold for 49,905.

Assume that Gonzalez Company purchased an asset on January 1, 2015, for $75,400. The asset had an estimated Ite of six years and an estimated residual value of $7.540. The company used the straight line method to depreciate the asset on July 1, 2017, the asset was sold for $49,905 Required: 1. Identity and analyze the effect of the transaction for depreciation for 2017 Activity Operating Accounts Depreciation Expense Increase, Accumulated Depreciation Asset Increase Statements) Balance Sheet and Income Statement Foto Why Wor Depreciation for 2015 to 2017: the straight line method of depreciation allocates cost of the asset every over time. Set up an account for accumulated depreciation. Depreciation journal entry: Record depreciation for 6 months updating for sale of asset How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative, ie, decrease be sure to enter the answer with a minus sign. Remember: ita contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders Assets Liabilities + Equity Revenues Expenses Accumulated Depreciation - Asset No Entry No Entry Depreciation Expense