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Instructions Chart of Accounts Analysis General Journal Instructions Egipment was acquired at the beginning of the year of a cost of $79,440. The equipment was

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Instructions Chart of Accounts Analysis General Journal Instructions Egipment was acquired at the beginning of the year of a cost of $79,440. The equipment was depreciated using the straight-line method based upon an estimated emetu te of 6 years and an estimated residual value of $7,500 Required: What was me depreciation expense for the first year Assuming the went was sold at the end of the second year for $50.897, determine the go or loss or of the equipment () Jounaline the entry to record the sales Refer to the Chart of Accounts for exact wording of account totes Ed CHART OF ACCOUNTS est General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 620 Gain on Sale Equipment 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 121 Equipment 122 Accumulated Depreciation 132 Goodwill EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 524 Rent Expense 525 Insurance Expense 531 Repairs and Maintenance Expense 133 Patents X Chart of Accounts Eg based 132 Goodwill es! 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 525 Insurance Expense 531 Repairs and Maintenance Expense 541 Depreciation Expense 543 Depletion Expense 544 Amortization Expense-Patents 591 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Equipment EQUITY 310 Common Stock 311 Retained Eamings 312 Dividends 313 Income Summary Analysis What was the depreciation expense for the first year? Assuming the equipment was sold at the end of the second year for $59,897, determine the gain or loss on sale of the equipment $ General Journal w Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles PAGE 1 AS JOURNAL DATE DESCRIPTION POST. REF DEBIT CREDIT 1 2

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