**Entries for Sale of Fixed Asset** Equipment acquired on January 8 at a cost of $128,850 has an estimated useful life of 13 years, has an estimated residual value of $9,900, and is depreciated by the straight-line method. **a.** What was the book value of the equipment at December 31 the end of the fourth year? - $ ___ **b.** Assume that the equipment was sold on April 1 of the fifth year for $84,147. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. | Account | Debit | Credit | |-----------------------------|--------|--------| | | | | | | | | | | | | 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. | Account | Debit | Credit | |-----------------------------|--------|--------| | | | | | | | | | | | | **Note**: The page includes a grid for journal entries with columns labeled "Account," "Debit," and "Credit." It provides spaces to input amounts and account names associated with the financial transactions described. Additional buttons like "Check My Work," "Save and Exit," and "Submit Assignment for Grading" are located at the bottom of the form for user interaction.
**Entries for Sale of Fixed Asset** Equipment acquired on January 8 at a cost of $128,850 has an estimated useful life of 13 years, has an estimated residual value of $9,900, and is depreciated by the straight-line method. **a.** What was the book value of the equipment at December 31 the end of the fourth year? - $ ___ **b.** Assume that the equipment was sold on April 1 of the fifth year for $84,147. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. | Account | Debit | Credit | |-----------------------------|--------|--------| | | | | | | | | | | | | 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. | Account | Debit | Credit | |-----------------------------|--------|--------| | | | | | | | | | | | | **Note**: The page includes a grid for journal entries with columns labeled "Account," "Debit," and "Credit." It provides spaces to input amounts and account names associated with the financial transactions described. Additional buttons like "Check My Work," "Save and Exit," and "Submit Assignment for Grading" are located at the bottom of the form for user interaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Entries for Sale of Fixed Asset**
Equipment acquired on January 8 at a cost of $128,850 has an estimated useful life of 13 years, has an estimated residual value of $9,900, and is depreciated by the straight-line method.
**a.** What was the book value of the equipment at December 31 the end of the fourth year?
- $ ___
**b.** Assume that the equipment was sold on April 1 of the fifth year for $84,147.
1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required.
| Account | Debit | Credit |
|-----------------------------|--------|--------|
| | | |
| | | |
| | | |
2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.
| Account | Debit | Credit |
|-----------------------------|--------|--------|
| | | |
| | | |
| | | |
**Note**: The page includes a grid for journal entries with columns labeled "Account," "Debit," and "Credit." It provides spaces to input amounts and account names associated with the financial transactions described.
Additional buttons like "Check My Work," "Save and Exit," and "Submit Assignment for Grading" are located at the bottom of the form for user interaction.
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