On Jan 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of 4 years or 130,000 units of production.

Elway uses the straight line method of depreciation. Elway uses the straight line method of depreciation.

On Jan 1, 2023, Elway sells the equipment for $15,000 cash. Prepare the journal entry to record the disposal of the equipment.

On Jan 1,2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of 4 years or 130,000 units of production. Elway uses the straight line method of depreciation. On Jan 1, 2023, Elway sells the equipment for $15,000 cash. Prepare the journal entry to record the disposal of the equipment. DR: Cash DR: Accumulated Depreciation DR: CR: Equipment On Jan 1,2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of 4 years or 130,000 units of production. Elway uses the straight line method of depreciation. On Jan 1, 2023, Elway sells the equipment for $15,000 cash. Prepare the journal entry to record the disposal of the equipment. DR: Cash DR: Accumulated Depreciation DR: CR: Equipment