Entries for sale of fixed asset

Equipment acquired on January $8$ at a cost of $$170,520$ has an estimated useful life of $18$ years, has an estimated residual value of $$7,800,$ and is depreciated by the straight$-$line method.

a$.$ What was the book value of the equipment at December $31$ the end of the fourth year?

$

Feedback

Check My Work

Book value is the initial cost of the fixed asset minus the accumulated depreciation.

b$.$ Assuming that the equipment was sold on April $1$ of the fifth year for $$126,830.$

Journalize the entry to record depreciation for the $3$ months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if re

Account

Debit

Credit

Depreciation Expense$-$Equipment $$

$$

Accumulated Depreciation$-$Equipment $$

$$

Feedback

Check My Work

The depreciation account of the fixed asset being sold or discarded needs to be updated to reflect the months of use in the year it is being discarded or sold. The straight$-$line method of depreciatio be recognized each year.

Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

$$

Accumulated Depreciation$-$Equipment $v$

$$

$$

$$

$$

Loss on Sale of Equipment

$$

$$