Question 6 View Policies Current Attempt in Progress --/2 Blossom Company owns equipment that cost $84,000 when purchased on January 1, 2019. It has
Question 6 View Policies Current Attempt in Progress --/2 Blossom Company owns equipment that cost $84,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $24,000 and an estimated useful life of 5 years. Prepare Blossom Company's journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $49,000 on January 1, 2022. (b) Sold for $49,000 on May 1, 2022. (c) Sold for $23,000 on January 1, 2022. (d) Sold for $23,000 on October 1, 2022. No. Account Titles and Explanation Debit Credit (a) (b) (To record depreciation) (c) (To record sale of equipment) (d) (To record depreciation) (To record sale of equipment)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To record the transactions we need to follow these steps 1 Calculate Annual Depreciation Annual Depreciation Cost Salvage Value Useful Life 84 000 24 ...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
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