Problem 1

A company sells equipment that originally cost $4,500 and has accumulated depreciation of $3,100. Please make the journal entry to record this sale under 3 situations;

a) The equipment is sold for $1,400

b) The equipment is sold for $1,800

c) The equipment is sold for $1,200

Problem 2

On January 1, 2018, a company purchased a patent for $28,000 that was paid in cash. The patent will last 14 more years.

a) Please make the journal entry to record the purchase of the patent

b) Please make the journal entry to record the amortization of the patent at the end of 2018 using the straight line method