*Exercise 9-12 Shown below are the T-accounts relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $210. Part of the equipment was sold on the last day of the current year for cash proceeds. Cash Jan. 1 (a) Dec. 31 Jan. 1 550 560 Equipment 1,2101 Dec. 31 Accumulated Depreciation-Equipment Dec. 31 150 Depreciation Expense (b) Gain on Disposal of Plant Assets Dec. 31 210 Dec. 31 Dec. 31 (c) c Prepare the journal entries to record purchase of equipment on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1 What was the cash paid? Cash Dec. 31 560 Jan. 1 Prepare the journal entry to record depreciation recorded on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 What was the depreciation expense? Depreciation Expense Dec. 31 Prepare the journal entry to record sale of part of the equipment on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31 What was the gain on disposal? Gain on Disposal of Plant Assets Dec. 31