Sunland Company owns equipment that cost $$114\mathrm{.}000$ when purchased on January $2,2024.$ It has been depreciated using the straight$-$line method based on estimated residual value of $$6,000$ and an estimated useful life of five years.

Following are the four independent situations. Assume depreciation has been recorded to the date of sale.

$($a$)$

Your Answer

Correct Answer $($Used$)$

Prepare Sunland Company's journal entry to record the sale of the equipment for $$51,600$ on January $2,2027./$Credit account titles are automatically indented when the amount is entered. Do not indent manually If no entry is required, select $"$o Entry for the acpount titles and enter O for the amounts. List all debit entries before credit entries$)$

Date Account Titles

Debit

credit

Jan.

$2$

Cash

$51,600$

Accumulated Depreciation $-$ Equipment

$64,800$

Equipment

Gain on Disposal

$114,000$

$($b$)$

Prepare Sunland Company's journal entry to record the sale of the equipment for $$51,600$ on May $1,2027.($Gredit 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 O for the amounts. List all debit entries before credit entries.$)$

Date Account Titles

Debit

Credit