Q5 Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $125,000. The residual value of the equipment was estimated to be $8,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $34,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.

Required 1 Required 2 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Credit No 1 Event 1 General Journal Cash Accumulated depreciation-equipment Loss on sale of equipment Equipment Debit 34.000 87,750 3,250 125,000 Required 1 Required 2 > Required 1 Required 2 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Event Credit General Journal Cash Accumulated depreciation-equipment Gain on sale of equipment Equipment Debit 34,000 115,880 24,880 X 125,000