Entries for Sale of Fixed Asset

Equipment acquired on January 5 at a cost of $160,640, has an estimated useful life of 16 years, has an estimated residual value of $8,800, 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

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

Learning Objective 3.

b. Assuming that the equipment was sold on April 1 of the fifth year for 114,902.

1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required.

	Depreciation Expense-Equipment
	Accumulated Depreciation-Equipment

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.

Learning Objective 3.

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
	Accumulated Depreciation-Equipment
	Loss on Sale of Equipment
	Equipment

Please show calculations on how you got the numbers

Entries for Sale of Fixed Asset Equipment acquired on January 5 at a cost of $160,640, has an estimated useful life of 16 years, has an estimated residual value of $8,80D, 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? d is depreciated by the 122,200X Book value is the initial cost of the fixed asset minus the accumulated deprecation. Learning Objective 3. b. Assuming that the equipment was sold on April 1 of the fifth year for 114,902 1. Journalize the entry to record depreciation for the three months until the sele date. Round your answers to the nerest whole do ar if required. Deprecation Expense Equipment 3,150X Depreciation nent 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 methad of depreciation calculates the amount of depreciation to be recognized each year. Learning Objective 3. 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entryr leave it blank. Do not round intermediate caloulations. Cash Loss on Sale of Equipment 160,640