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Hi, I'm a little stuck on this question. Please help! Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $145,000. The
Hi, I'm a little stuck on this question. Please help!
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $145,000. The residual value of the equipment was estimated to be $14,500 at the end of a five-year life. The equipment was sold on March 31, 2021, for $46,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. View transaction list Journal entry worksheet Record sale of equipment. Note: Enter debits before credits. Credit Event General Journal Debit Record entry Clear entry View general journal View transaction list Journal entry worksheet Record sale of equipment. Note: Enter debits before credits. General Journal Event Debit Credit Clear entry Record entry View general journalStep by Step Solution
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