### InstructionsComputer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.)#### Required:Journalize the following entries:a. **Record the depreciation for the one-half year prior to the sale, using the straight-line method.**b. **Record the sale of the equipment.**c. **Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.***Refer to the Chart of Accounts for exact wording of account titles.*---This section involves the analysis and recording of transactions related to the depreciation and sale of a long-term asset, specifically office computer equipment. By following the outlined steps, you will gain practical experience in handling depreciation and sale entries, important aspects of asset management in accounting.

Transaction General Journal Debit Credit a Depreciation expense-Office Equipment…

Answered: 00 cash. (Appropriate entries for…

00 cash. (Appropriate entries for Required: Journalize the following entries 1. Record the depreciation for th- . Record the sale of the equipm Assuming that the equipment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

### Instructions

Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.)

#### Required:

Journalize the following entries:

a. **Record the depreciation for the one-half year prior to the sale, using the straight-line method.**

b. **Record the sale of the equipment.**

c. **Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.**

*Refer to the Chart of Accounts for exact wording of account titles.*

---

This section involves the analysis and recording of transactions related to the depreciation and sale of a long-term asset, specifically office computer equipment. By following the outlined steps, you will gain practical experience in handling depreciation and sale entries, important aspects of asset management in accounting.

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