Instructions Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double declining balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. A. What was the depreciation for the first year? Round your intermediate calculations to a decimal places. Hound the depreciation for the year no the nearest whole dollar B. plssuming that the equipment was sold at the end of the second year for $631,897, determine the gain or loss on the sale of the equipmenie, C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for exact worting of account others. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation Equipment 130 Mineral Rights 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 131 Accumulated Depletion 132 Goodwill 133 Patents LIABILITIES 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner's Capital 311 Owner's Drawing A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. s Points: 0/1 B. Assuming that the equipment was sold at the end of the second year for $631,897, determine the gain or loss on the sale of the equipment. $246,027 gain Points 1/1 Journal Shaded cells have feedback. C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 1 JOURNAL Score: 0/49 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3
