Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is
Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.)
Required:
Journalize the following entries: | |
a. | Record the depreciation for the one-half year prior to the sale, using the straight-line method.* |
b. | Record the sale of the equipment.* |
c. | Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.* |
*Refer to the Chart of Accounts for exact wording of account titles. |
Journalize the following entries on December 31: | |
a. | Record the depreciation for the one-half year prior to the sale, using the straight-line method. |
b. | Record the sale of the equipment. |
c. | Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale. |
Refer to the Chart of Accounts for exact wording of account titles. |
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started