Shown below are the T-accounts relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $ 180. Part of the equipment was sold on the last day of the current year for cash proceeds. Cash Jan 1 Dec. 31 530 Equipment Jan. 1 1,180 Dec. 31 520 Accumulated Depreciation Equipment Dec. 31 100 Dec 31 120 Depreciation Expense Dec. 31 (b) Gain on Disposal of Plant Assets Dec. 31 (c) ) Your answer is correct. Prepare the journal entries to record purchase of equipment on January 1. (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.) Date Account Titles and Explanation Debit Credit Jan. 1 Equipment 1180 Cash 1180 What was the cash paid? Your answer is correct Prepare the journal entry to record depreciation recorded on December 31. (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.) Debit Credit Date Account Titles and Explanation Dec. 31 Depreciation Expense 100 Accumulated Depreciation Equipment 100 What was the depreciation expense? Depreciation Expense Dec. 31 100 e Textbook and Media List of Accounts Your answer is partially correct. Prepare the journal entry to record sale of part of the equipment on December 31. (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.) Debit Credit Date Account Titles and Explanation Dec. Cash 530 31 Accumulated Depreciation-Equipment 44 Equipment DOT 520 55 What was the gain on disposal? Gain on Disposal of Plant Assets Dec 31 55 eTextbook and Media List of Accounts Save for Later Attempts: 2 of 3 used Submit