Sunland Company purchases a patent for $$186,200$ on January $2,2025.$ Its estimated useful life is $8$ years.

$($a$)$ Prepare the journal entry to record amortization expense for the first year. $($List debit entry before credit entry. Credit account titles are automatically indented when 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.$)$

Account Titles and Explanation

Debit

Credit

$($b$)$ Show how this patent is reported on the balance sheet at the end of the first year.

Sunland Company Balance Sheet $($Partial$)$

Sunland Company purchases a patent for $$186,200$ on January $2,2025.$ Its estimated useful life is $8$ years.

$($a$)$ Prepare the journal entry to record amortization expense for the first year. $($List debit entry before credit entry. Credit account titles are automatically indented when 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.$)$

Account Titles and Explanation

Debit

Credit

$($b$)$ Show how this patent is reported on the balance sheet at the end of the first year.

Sunland Company Balance Sheet $($Partial$)$

Crane Company sells office equipment on July $31,2025,$ for $$20,440$ cash. The office equipment originally cost $$82,640$ and as of January $1,2025,$ had accumulated depreciation of $$38,770.$ Depreciation for the first $7$ months of $2025$ is $$4,250.$

Prepare the journal entries to $($a$)$ update depreciation to July $31,2025,$ and $($b$)$ record the sale of the equipment. $($List all debit entries before credit entries. Credit account titles are automatically indented when 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.$)$

No$.$

Date

Account Titles and Explanation

Debit

$($a$)$

$$

$($b$)$

$$

$$

Sunland Company owns equipment that cost $$75,400$ when purchased on January $1,2022.$ It has been depreciated using the straightline method based on an estimated salvage value of $$5,800$ and an estimated useful life of $5$ years.

Prepare Sunland Company's journal entries to record the sale of the equipment in these four independent situations. $($List all debit entries before credit entries. Credit account titles are automatically indented when 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.$)$

$($a$)$ Sold for $$35,960$ on January $1,2025.$

$($b$)$ Sold for $$35,960$ on May $1,2025.$

$($c$)$ Sold for $$12,760$ on January $1,2025.$

$($d$)$ Sold for $$12,760$ on October $1,2025.$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

Sunland Company owns equipment that cost $$75,400$ when purchased on January $1,2022.$ It has been depreciated using the straightline method based on an estimated salvage value of $$5,800$ and an estimated useful life of $5$ years.

Prepare Sunland Company's journal entries to record the sale of the equipment in these four independent situations. $($List all debit entries before credit entries. Credit account titles are automatically indented when 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.$)$

$($a$)$ Sold for $$35,960$ on January $1,2025.$

$($b$)$ Sold for $$35,960$ on May $1,2025.$

$($c$)$ Sold for $$12,760$ on January $1,2025.$

$($d$)$ Sold for $$12,760$ on October $1,2025.$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

Sunland Company owns equipment that cost $$75,400$ when purchased on January $1,2022.$ It has been depreciated using the straightline method based on an estimated salvage value of $$5,800$ and an estimated useful life of $5$ years.

Prepare Sunland Company's journal entries to record the sale of the equipment in these four independent situations. $($List all debit entries before credit entries. Credit account titles are automatically indented when 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.$)$

$($a$)$ Sold for $$35,960$ on January $1,2025.$

$($b$)$ Sold for $$35,960$ on May $1,2025.$

$($c$)$ Sold for $$12,760$ on January $1,202$