On May 28, 2021, Sandhill Services purchased equipment for $99,600, giving the supplier a 1-year note at 5% (due at maturity) for $80,410, and paid the balance with cash. Sandhill also paid Wu Engineering $5,400 cash for installing the equipment on May 30. The equipments useful life was estimated to be five years, with an $18,000 residual value. The straight-line method of depreciation is used for equipment and Sandhill has a calendar year end. On October 4, 2023, the equipment was destroyed in an accident. Sandhill received $61,680 cash as insurance proceeds for the equipment.

a)

Record the transactions of May 28 and 30, 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2021
May 28
May 30

b)

Record the depreciation expense for Sandhill for the fiscal years ended December 31, 2021 and 2022. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2021
Dec. 31
2022
Dec. 31

c)

Prepare all of the necessary journal entries on October 4, 2023 following the destruction of the asset. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2023
Oct. 4
	(To record depreciation expense)
Oct. 4
	(To record sale of equipment)

d)

Repeat parts (b) and (c) under the assumption that Sandhill Services used the diminishing balance method, using a rate of 20%. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
2021
Dec. 31
2022
Dec. 31
2023
Oct. 4
	(To record depreciation expense)
Oct. 4
	(To record sale of equipment)

List of accounts:

• Accounts Payable
• Accumulated Amortization - Copyrights
• Accumulated Amortization - Goodwill
• Accumulated Amortization - License
• Accumulated Amortization - Patents
• Accumulated Amortization - Trademark
• Accumulated Depreciation - Building
• Accumulated Depreciation - Equipment
• Accumulated Depreciation - Furniture
• Accumulated Depreciation - Land Improvements
• Accumulated Depreciation - Mine
• Accumulated Depreciation - Vehicles
• Advertising Expense
• Amortization Expense
• Building
• Cash
• Charitable Donation Expense
• Copyrights
• Cost of Goods Sold
• Depreciation Expense
• Equipment
• Furniture
• Gain on Disposal
• Goodwill
• Impairment Loss
• Indefinite Life Intangibles
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventory
• Land
• Land Improvements
• Licenses
• Loss on Disposal
• Loss on Fair Value Adjustment of Land
• Maintenance Expense
• Mine
• Mortgage Payable
• No Entry
• Notes Payable
• Notes Receivable
• Operating Expenses
• Other Expenses
• Patents
• Prepaid Insurance
• Property Tax Expense
• Research Expense
• Repairs Expense
• Trademark
• Training Expense
• Vehicles