Question
Please help on the following: On November 1, 2013, Rob's Auto Repair purchased diagnostic equipment for $18,000. The equipment had an estimated residual value of
Please help on the following:
On November 1, 2013, Rob's Auto Repair purchased diagnostic equipment for $18,000. The equipment had an estimated residual value of $3,000 and a five-year life and was sold on May 1, 2015. Assuming that the company depreciates the asset on a straight-line basis and reports on a calendar-year basis, journalize the following independent transactions in the journal provided. (Omit explanations.)
a. The entry to update depreciation to May 1, 2015 (Remember-you are only completing the depreciation for the current year to bring the depreciation up-to-date.)
b. The entry to record the sale for $15,500
c. The entry to record the sale instead for $11,050
d. The entry to record the sale instead for $13,750
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