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struction Chart of Accounts First Questions General Journal 1 Instructions Equipment was acquired at the beginning of the year at a cost of $79,680. The

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struction Chart of Accounts First Questions General Journal 1 Instructions Equipment was acquired at the beginning of the year at a cost of $79,680. The equpment was deprecated using the straight-ine method based upon an estimated useful le of 6 years and an estimated residunt value of $7.980. Required: What was the depreciation expense for the first year? b. Assurning the equipment was sold at the end of the second year for $60.242, determine the pain or loss on sale of the man coumalize the only to record the sale. Reler to the Chart of Accounts for exact wording of account hos strucbons Chart of Accounts CONVIVENC based upon 510 Cost of Goods Sold 116 Inventory 117 Supplies 119 Prepaid Insurance 520 Salaries Expense 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 120 Land 121 Equipment 122 Accumulated Depreciation 524 Rent Expense 132 Goodwill 525 Insurance Expense 531 Repairs and Maintenance Expense 133 Patents 541 Depreciation Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 543 Depletion Expense 544 Amortization Expense-Patents 591 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Equipment EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 620 Gain on Sale Equipment 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Supplies 119 Prepaid Insurance 120 Land 121 Equipment 122 Accumulated Depreciation 132 Goodwill EXPENSES 510 Cost of Goods Sold 520 Salaries Expense 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 524 Rent Expense 525 Insurance Expense 531 Repairs and Maintenance Expense 541 Depreciation Expense 543 Depletion Expense 544 Amortization Expense-Patents 591 Miscellaneous Expense 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable First Questions General Journal art of Accounts First Questions a. What was the depreciation expense for the first year? Depreciation expenses b. Assuming the equipment was sold at the end of the second year for $60.242, determine the gain or loss on sale of the equipment Sale of the equipment $ PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2

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