Equipment acquired on January at a cost of $144,930 has an estimated usetult ute of 14 years, has an estimated residual value of $8,850, and is depreciated by the straight-ine 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 soh year for 598,290, ouralize the entries to record (1) depreciation for the three month wel the sale dello and (2) the sale of the pupment. Roter to the Chart of Accounts for exact wording of account was Round your auswer to the nearest whole dollar Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 620 Gain on Sale of Delivery Truck 112 Accounts Receivable 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation Equipment 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents Chart of Accounts 125 Equipment 126 Accumulated Depreciation-Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner's Capital 311 Owner's Drawing A. What was the book value of the equipment at December 31 the end of the fourth year? $106,050 8. Assuming that the equipment was sold on April tof the ninth year for $98.290, journalize the entries to record the following (Refer to the Chart of Accounts for exact wording of account titles. Round your answer to the nearest whole dollar.) 1. Decreciation for the three months until the sale diete PAGE 1 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. RER DEBIT CREDIT ASSETS LABILITIES EQUITY DATE App: 5 Depreciation 1 2,430.00 2 2,450.00 2 The sale of the equipment PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DERIT CREDIT ASSETS LASLITIES EQUITY 1 Apr. 5 Depreciation 2,450.00 2 2,430.00 2. The sale of the equipment PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REE DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Apt 5 Cash 1 98,290,00 5,550,00 2 Loss on Sale of Equipment 1 3 Equipment 103,620.00 1 4
