Assume that on January 2,

2019,

a

Good Morning

franchise purchased fixtures for

$14,700

cash, expecting the fixtures to remain in service

five

years. The restaurant has depreciated the fixtures on a double-diminishing-balance basis, with

$1,150

estimated residual value. On June 30,

2020,

Good Morning

sold the fixtures for

$3,700

cash.

Requirements

1.	Record the sale of the fixtures.
2.	Management is thinking of switching to the straight-line method of depreciation. Do you agree? Why or why not?

Requirement 1. Record the sale of the fixtures.

Record the depreciation expense on the fixtures for

2020

and then the sale of the fixtures. Record the depreciation expense on the fixtures for the first six months of

2020.

Assume that on January 2, 2019, a Good Morning franchise purchased fixtures for $14,700 cash, expecting the fixtures to remain in service five years. The restaurant has depreciated the fixtures on a double-diminishing-balance basis, with $1,150 estimated residual value. On June 30, 2020, Good Morning sold the fixtures for $3,700 cash. Requirements 1. Record the sale of the fixtures. 2. Management is thinking of switching to the straight-line method of depreciation. Do you agree? Why or why not? Requirement 1. Record the sale of the fixtures. Record the depreciation expense on the fixtures for 2020 and then the sale of the fixtures. Record the depreciation expense on the fixtures for the first six months of 2020. (Record debits first, then credits. Explanations are not required. Round the depreciation expense to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit June 30|| Depreciation Expense-Fixtures 1824 Accumulated Depreciation Fixtures 1824