Entries for Sale of Long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in the normal business operations and that depreciate over time.Fixed Asset

Equipment acquired on January 8 at a cost of $156,950, has an estimated useful life of 15 years, has an estimated The estimated value of a fixed asset at the end of its useful life.residual value of $9,050, and is depreciated by the A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.straight-line method.

a. What was the The cost of a fixed asset minus accumulated depreciation on the asset.book value of the equipment at December 31 the end of the fourth year? $

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b. Assuming that the equipment was sold on April 1 of the fifth year for 109,680.

1. Journalize the entry to record The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required.

	Accounts Payable Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Equipment Expense
	Accounts Payable Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Equipment Expense

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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.

	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 Equipment Loss on Sale of Equipment Depreciation Payable-Equipment
	Accumulated Depreciation-Equipment Equipment Equipment Expense Gain on Sale of Equipment Loss on Sale of Equipment