Question
Equipment acquired on January 6 at a cost of $417,390, has an estimated useful life of 17 years and an estimated residual value of $68,805.
Equipment acquired on January 6 at a cost of $417,390, has an estimated useful life of 17 years and an estimated residual value of $68,805.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Year 1 depreciation expense | |
Year 2 depreciation expense | |
Year 3 depreciation expense |
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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D. Assuming that the equipment had been sold on January 3 of Year 4 for $368,885 instead of $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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4 |
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