Instructions Equipment was acquired at the beginning of the year at a cost of $70,000. The equipment was deprecated using the straight-line method based upon an estimated telui le of 6 years and an estimated residual value of $7,500 Required: What was the depreciation expense for the first year? b. Assuming the equipment was told at the end of the second year for $69.897, determine the gain or loss on sale of the equipment Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of accounts t of Accounts CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale Equipment 114 Interest Receivable 115 Notes Receivable EXPENSES 510 Cost of Goods Sold 116 Inventory 117 Supplies 520 Salaries Expense 119 Prepaid Insurance 120 Land 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 121 Equipment 122 Accumulated Depreciation 524 Rent Expense 525 Insurance Expense 132 Goodwill 133 Patents 531 Repairs and Maintenance Expense 541 Depreciation Expense Instructions Chart of Accounts Eq an 121 Equipment 122 Accumulated Depreciation 523 Delivery Expense 524 Rent Expense 525 Insurance Expense 531 Repairs and Maintenance Expense 132 Goodwill 133 Patents 541 Depreciation Expense LIABILITIES 543 Depletion Expense 210 Accounts Payable 211 Salaries Payable 544 Amortization Expense-Patents 591 Miscellaneous Expense 710 Interest Expense 213 Sales Tax Payable 214 Interest Payable 720 Loss on Sale of Equipment 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends First Questions a. What was the depreciation expense for the first year? Depreciation expense $ b. Assuming the equipment was sold at the end of the second year for $69,897, determine the gain or loss on sale of the equipment Sale of the equipment $ General Journal c. Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account files. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEST CREDIT ASSETS LABUTIES FOUITY 1 2 1