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On January 2, 2023, Thompson Excavating purchased equipment for $40,000 cash, expecting the equipment to remain in service for five years, with a $4,000 residual
On January 2, 2023, Thompson Excavating purchased equipment for $40,000 cash, expecting the equipment to remain in service for five years, with a $4,000 residual value. Thompson uses double-declining-balance depreciation. On April 30, 2025, Thompson sold the equipment for $30,000 cash.
Requirement:
Prepare the journal entries to record the purchase of the equipment; depreciation for 2023, 2024, and 2025; and the sale of the equipment. Omit explanations and round to the nearest dollar
Date | Accounts | Debit | Credit |
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Date | Accounts | Debit | Credit |
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