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 $290. Part of the equipment was sold on the last day of the current year for cash proceeds.

Cash
		Jan. 1	(a)
Dec. 31	640

Equipment
Jan. 1	1,290
		Dec. 31	630

Accumulated DepreciationEquipment
		Dec. 31	100
Dec. 31	230

Depreciation Expense
Dec. 31	(b)

Gain on Disposal of Plant Assets
		Dec. 31	(c)

(a)

Partially correct answer icon

Your answer is partially 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	enter an account title to record purchase of equipment on January 1	enter a debit amount	enter a credit amount
	enter an account title to record purchase of equipment on January 1	enter a debit amount	enter a credit amount

What was the cash paid?

Cash
Dec. 31	640	Jan. 1	enter the amount of cash paid on January 1