Exercise 7. Becca Company owns equipment which cost $50,000 when purchased on January 1, 20X1. It has been depreciated using the straight-line method based on a residual value of $5,000 and an estimated useful life of 5 years. Prepare the journal entry(ies) needed for the sale of the equipment under each of the following independent situations. (Hint: remember to update depreciation if necessary) a) Sold for $28,000 on January 1, 20X4. b) Sold for $28,000 on May 1, 20X4. c) Sold for $11,000 on January 1, 20X4. d) Sold for $11,000 on October 1, 20X4.

Exercise 7. Becca Company owns equipment which cost $50,000 when purchased on January 1 , 20X1. It has been depreciated using the straight-line method based on a residual value of $5,000 and an estimated useful life of 5 years. Prepare the journal entry(ies) needed for the sale of the equipment under each of the following independent situations. (Hint: remember to update depreciation if necessary) a) Sold for $28,000 on January 1,204. b) Sold for $28,000 on May 1,204. c) Sold for $11,000 on January 1,204. d) Sold for $11,000 on October 1,204