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On 1/1/2022, Seaver Inc. purchased new equipment for 350,000, paying cash. The asset is depreciated using the straight-line method over 10 years, with no salvage
- On 1/1/2022, Seaver Inc. purchased new equipment for 350,000, paying cash.
The asset is depreciated using the straight-line method over 10 years, with no salvage value.
Adjusting entries are made once per year, on December 31.
On 1/1/2027 (asset has depreciated 5 years), Seaver sells the equipment for $62,000 cash
- Make all 2022 journal entries (two of them)
- Make the 2023 journal entry (one entry)
- Make the 1/1/2027 journal entry for the sale (one entry)
- For each journal entry, what is the effect on total assets, liabilities, equity, revenues, expenses, and net income? Give both direction and amount.
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