Question
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $140,490 has an estimated useful life of 17 years, has
Entries for Sale of Fixed Asset
Equipment acquired on January 8 at a cost of $140,490 has an estimated useful life of 17 years, has an estimated residual value of $7,550, 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? $fill in the blank cb7e6000602ffe1_1
Feedback
Book value is the initial cost of the fixed asset minus the accumulated depreciation.
b. Assume that the equipment was sold on April 1 of the fifth year for $102,240.
1. Journalize the entry to record depreciation for the three 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 required.
Depreciation Expense-Equipment | fill in the blank c0a216f55028016_2 | fill in the blank c0a216f55028016_3 | |
Accumulated Depreciation-Equipment | fill in the blank c0a216f55028016_5 | fill in the blank c0a216f55028016_6 |
Feedback
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 depreciation calculates the amount of depreciation to be recognized each year.
2. 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.
Cash | fill in the blank 367f4308005005c_2 | fill in the blank 367f4308005005c_3 | |
Accumulated Depreciation-Equipment | fill in the blank 367f4308005005c_5 | fill in the blank 367f4308005005c_6 | |
Loss on Sale of Equipment | fill in the blank 367f4308005005c_8 | fill in the blank 367f4308005005c_9 | |
Equipment | fill in the blank 367f4308005005c_11 | fill in the blank 367f4308005005c_12 |
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