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Pharoah Company owns equipment that cost $71,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated
Pharoah Company owns equipment that cost $71,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $11,000 and an estimated useful life of 5 years.
Prepare Pharoah Companys journal entries to record the sale of the equipment in these four independent situations
(a)Sold for $37,000 on January 1, 2022.
(b)Sold for $37,000 on May 1, 2022.
(c)Sold for $15,000 on January 1, 2022.
(d)Sold for $15,000 on October 1, 2022.
Fill in the blanks please
No. Account Titles and Explanation Debit Credit (a) Cash 37000 Accumulated Depreciation-Equipment 36000 Equipment 71000 X 2000 (b) Depreciation Expense 4000 Accumulated Depreciation-Equipment 4000 2 (To record depreciation) Cash 37000 Accumulated Depreciation-Equipment 40000 Equipment 71000 6000 (To record sale of equipment) (c) Cash 15000 Tacumulared nanrariationen inment Rannal 6000 (To record sale of equipment) 15000 (c) Cash 36000 Accumulated Depreciation-Equipment 20000 Loss on Disposal of Plant Assets 71000 Equipment X (d) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation) Cash 15000 x Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets 71000 EquipmentStep by Step Solution
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