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On January 1, 2019, Mogul Ski Resort Ltd. purchased snow making equipment for $112.000 by paying a $22.400 cash down payment and issuing a note

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On January 1, 2019, Mogul Ski Resort Ltd. purchased snow making equipment for $112.000 by paying a $22.400 cash down payment and issuing a note payable for the balance. The equipment had an estimated useful life of 10 years and an estimated residual value of $22,400. Mogul uses the straight-line-method of depreciation and has a December 31 year end. On October 1, 2021, the equipment was sold for $74,360 cash. Prepare the journal entry to record the acquisition of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1. 2019 Record the 2019 and 2020 depreciation at the year-end of Dec. 31. Prepare the journal entries to update the depreciation and record the sale of the equipment on October 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31. 2019 Dec. 31. 2020 Oct. 1. 2021 (To record depreciation) Oct. 1. 2021 (To record sale of equipment) Assume instead that the company used the double-diminishing-balance method to depreciate the cost of the equipment: What amount of depreciation would be recorded in 2019 and 2020? 2019 2020 Depreciation expense $ What journal entries would be required to update the depreciation and record the sale of the equipment on October 1, 2021? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Oct. 1. 2021 (To record depreciation) Oct. 1. 2021 (To record sale of equipment)

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