Question
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $260,800 has an estimated useful life of 7 years and an estimated
Disposal of Fixed Asset
Equipment acquired on January 6 at a cost of $260,800 has an estimated useful life of 7 years and an estimated residual value of $34,000.
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a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Year | Depreciation Expense |
Year 1 | $fill in the blank a7ceb30b7046f9a_1 |
Year 2 | $fill in the blank a7ceb30b7046f9a_2 |
Year 3 | $fill in the blank a7ceb30b7046f9a_3 |
b. What was the book value of the equipment on January 1 of Year 4? $fill in the blank a7ceb30b7046f9a_4
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c. Assuming that the equipment was sold on January 3 of Year 4 for $155,400, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Jan. 3 | Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment | - Select - | - Select - |
Accounts ReceivableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment | - Select - | - Select - | |
Accounts PayableDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment | - Select - | - Select - | |
Accumulated Depreciation-EquipmentCashEquipmentGain on Sale of EquipmentLoss on Sale of Equipment | - Select - | - Select - |
Question Content Area
d. Assuming that the equipment had been sold on January 3 of Year 4 for $166,900 instead of $155,400, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Jan. 3 | CashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment | - Select - | - Select - |
Accounts PayableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment | - Select - | - Select - | |
Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment | - Select - | - Select - | |
Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentGain on Sale of EquipmentLoss on Sale of Equipment | - Select - | - Select - |
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