Question
Entries for sale of fixed asset Equipment acquired on January 8 at a cost of $130,100 has an estimated useful life of 13 years, has
Entries for sale of fixed asset
Equipment acquired on January 8 at a cost of $130,100 has an estimated useful life of 13 years, has an estimated residual value of $7,900, 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?
b. Assuming that the equipment was sold on April 1 of the fifth year for $84,175.
1. 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 required.
blank | Account | Debit | Credit |
---|---|---|---|
blank | Accounts Payable Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment | ||
Accounts PayableAccumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment |
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.
blank | Account | Debit | Credit |
---|---|---|---|
blank | Accounts Payable Cash Depreciation Expense-Equipment Equipment Gain on Sale of Equipment | ||
Accounts Payable Accumulated Depreciation-Equipment Depreciation Expense-Equipment Equipment Gain on Sale of Equipment | |||
Accounts Receivable Depreciation Expense-Equipment Depreciation Payable-Equipment Equipment Loss on Sale of Equipment | |||
Accumulated Depreciation-Equipment Equipment Equipment Expense Gain on Sale of Equipment Loss on Sale of Equipment |
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