Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On September 30, 2020, Sustco Ltd. purchased a piece of equipment for $16,000. At the time management determined that the equipment would have a residual
On September 30, 2020, Sustco Ltd. purchased a piece of equipment for $16,000. At the time management determined that the equipment would have a residual value of $2,000 at the end of its five-year life. Sustco has a December 31 year end and uses the straight-line depreciation method. Sustco ended up selling the piece of equipment on June 30, 2022, for $9,100. (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.) Debit Credit Date Account Titles and Explanation Sept. Equipment 2020 30, 16000 Cash 16000 Dec. 31, 2020 Depreciation Expense 700 Accumulated Depreciation - Equipment 700 Dec. 31, Depreciation Expense 2800 2021 Accumulated Depreciation - Equipment 2800 Jun. 30, 2022 Depreciation Expense 1166,67 1166.67 Accumulated Depreciation - Equipment (To record depreciation expense) Jun. 30, 2022 (To record sale of equipment) M
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started