On January 2, 2004, Shady Corp. acquired equipment for $110,000. The estimated life of the equipment is 5 years, the estimated residual value is $10,000 and Shady Corp. uses the straight-line method for computing depreciation expense. On June 30^th of 2006 (2 and ½ years after acquiring the asset), Shady Corp sold the equipment for $50,000.

What two journals entries were made on June 30^th, 2006, on the date the asset was sold? directly below.

1. The first (adjusting) entry recorded on June 30th, 2006 was:

Provide answer towards the bottom of the answer sheet

2. The second entry to record the equipment sale on June 30th, 2006 was:

            Provide answer towards the bottom of the answer sheet