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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.

Question Content Area

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

Question Content Area

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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