Assume that on January$2,20$X$6,$ Maxwell of Nebraska purchased fixtures for $$8,100$cash$,$ expecting the fixtures to remain in service for five years. Maxwell has depreciated the fixtures on a$$ double$-$declining$-$balance basis, with $$1,800$ estimated residual value. On August $31,20$X$7,$ Maxwell sold the fixtures for $$2,600$ cash.

Requirement

$1.$

Record both the depreciation expense on the fixtures for $20$X$7$ and the sale of the fixtures. Apart from your journal$$ entry, also show how to compute the gain or loss on Maxwell$\text{'}$s disposal of these fixtures.

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Part $1$

Start by recording depreciation expense on the fixtures for $20$X$7.($Record debits$$ first, then credits. Explanations are not required. Leave unused cells$$ blank.$)$

Journal Entry

Date

Accounts

Debit

Credit

Aug $31$a double$-$declining$-$balance basis, with $$1,800$ estimated residual value. On August $31,20$X$7,$ Maxwell sold the fixtures for $$2,600$ cash.

Requirement

these fixtures.

Start by recording depreciation expense on the fixtures for $20$X$7.($Record debits first, then credits. Explanations are not required. Leave unused cells blank.$)$