Sheridan Co. purchased equipment on March 1, 2019, for $ 90,000 on account. The equipment had an estimated useful life of five years, with a residual value of $ 5,000. The equipment is disposed of on February 1, 2022. Sheridan Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end.

Record the acquisition of the equipment on March 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 1
	(To record purchase of equipment on account.)

Record depreciation at August 31, 2019, 2020, and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 2019

Date	Account Titles and Explanation	Debit	Credit
Aug. 31
	(To record depreciation expense.)

2020

Date	Account Titles and Explanation	Debit	Credit
Aug. 31
	(To record depreciation expense.)

2021

Date	Account Titles and Explanation	Debit	Credit
Aug. 31
	(To record depreciation expense.)

Record the disposal on February 1, 2022, under the following assumptions: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) 1. It was scrapped with no residual value. It was sold for $ 52,000 2. 3. It was sold for $42.510 It was traded for new equipment with a list price of $ 93,500. Sheridan was given a trade-in allowance of $ 49,500 on the old equipment and paid the balance in cash. Sharidan determined the old equipment's fair value to be $ 44,660 at the date of the exchange Debit Credit Date Account Titles and Explanation 2022 Feb. 1 (To record depreciation expense. 1. Feb. 1 To record disposal) 2. 1 (To record disposal.) 3. Feb. 1 (To record disposal.) 2. Feb. 1 (To record disposal.) 3. Feb. 1 (To record disposal.) Feb. 1 (To record disposal.) uestion Part Score -/17