Boulika Limited Presented here are selected transactions for 2020. The company uses straight-line depreciation and adjusts its accounts annually. Instructions: Record the transactions. When there is more debit or credit account, enter accounts in alphabetical orde Jan 1,2020: Sold equipment for $2,000 cash. The equipment was purchased on January 1, 2014 for $2,000, and was depreciated based on a 10-year useful life with a $400 residual value. Cash 2000 Accumulated depreciation e 960 Equipment . 200 Gain on Disposal . 960 Oct 1,2020: Sold for $200 cash a computer that was purchased on January 1, 2018 for $1,000. Computer had a useful life of five years with no residual value. Record the depreciation expense Depreciation expense 151 Accumulated depreciation 151 Record the equipment disposal Cash 200 Accumulated depreciation 150 Loss on disposal . 650 1000 A/R Cash Prepaid expenses Inventory Allowance for bad debt Equipment Accumulated depreciation A/P Loan Dividends Shares Sales Gain on disposal Sales returns and allowance Sales discount Taxes expense Cost of good sold Rent expense Depreciation expense Insurance expenses Loss on disposal Bad debt expense