Kingbird Company owns equipment that cost $130,000 when purchased on January 1, 2019. It has been...
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Kingbird Company owns equipment that cost $130,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $13,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Kingbird Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) (a) (b) (c) (d) (e) (1) Sold for $79,000 on January 1, 2022. Sold for $79.000 on April 1, 2022. Sold for $27,500 on January 1, 2022. Sold for $27,500 on September 1, 2022. Repeat (a), assuming Kingbird uses double-declining balance depreciation. Repeat (c), assuming Kingbird uses double-declining balance depreciation. SR. Account Titles and Explanation (a) (b) (To record depreciation) Debit Credit (c) (To record depreciation) (To record sale of Equipment) (d) (e) (To record depreciation) (To record sale of Equipment) 4 (e) (1) Kingbird Company owns equipment that cost $130,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $13,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Kingbird Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) (a) (b) (c) (d) (e) (1) Sold for $79,000 on January 1, 2022. Sold for $79.000 on April 1, 2022. Sold for $27,500 on January 1, 2022. Sold for $27,500 on September 1, 2022. Repeat (a), assuming Kingbird uses double-declining balance depreciation. Repeat (c), assuming Kingbird uses double-declining balance depreciation. SR. Account Titles and Explanation (a) (b) (To record depreciation) Debit Credit (c) (To record depreciation) (To record sale of Equipment) (d) (e) (To record depreciation) (To record sale of Equipment) 4 (e) (1)
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Answer rating: 100% (QA)
a Sold for 79000 on January 1 2022 Date January 1 2022 Account Titles and Explanation Debit Cash 79000 Debit Accumulated Depreciation 52000 Credit Equ... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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