Exercise #3

Foley Company owns equipment that cost $50,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of $8,000 and an estimated useful life of 5 years.

Instructions

Prepare Foley Company's journal entries to record the sale of the equipment in these four independent situations.

(a)	Sold for $28,000 on January 1, 2014.
(b)	Sold for $28,000 on May 1, 2014.

(c)	Sold for $11,000 on January 1, 2014.
(d)	Sold for $11,000 on October 1, 2014.