**Depreciation and Sale of Office Equipment: Journal Entry Preparation****Scenario: Blossom Company**- **Date of Sale:** July 31, 2022 - **Sale Proceeds:** $23,050 cash - **Original Cost of Equipment:** $85,450 - **Accumulated Depreciation (as of January 1, 2022):** $39,450 - **Depreciation for First 7 Months of 2022:** $4,410 **Objective:** Prepare journal entries to:1. **Update depreciation** as of July 31, 2022.2. **Record the sale** of the equipment.**Guidelines for Journal Entry Preparation:**- Credit account titles will automatically indent when an amount is entered—do not manually indent.- If no entry is necessary, select "No Entry" for the account titles and enter 0 for the amounts.This scenario involves calculating both the updated accumulated depreciation up to the sale date and properly recording the sale transaction.

Blossom Company sells office equipment on July 31, 2022, for $23,050 cash. The office equipment originally cost $85,450 and as of January 1, 2022, had accumulated depreciation of $39,450. Depreciation for the first 7 months of 2022 is $4,410. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (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.)

Blossom Company sells office equipment on July 31, 2022, for $23,050 cash. The office equipment originally cost $85,450 and as of January 1, 2022, had accumulated depreciation of $39,450. Depreciation for the first 7 months of 2022 is $4,410. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer the following question: Beaver Construction purchases new equipment for $45,360 cash on April 1, 2024. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 84 months ($540/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Accumulated Depreciation and Depreciation Expense (assuming the balance of Accumulated Depreciation at the beginning of 2024 is $0).
Take me to the text On July 1, 2023, Earth Corporation purchased factory equipment for $159,000. The equipment has a residual value of $7,000 and is to be depreciated over 8 years using the double- declining-balance method. Earth Corporation's year end is on September 30. Calculate the depreciation expense to be recorded for the fiscal years ending September 30, 2023, and September 30, 2024. Earth Corporation depreciates its assets based on the number of months it owned the asset during the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. 2023 Depreciation: $ 2024 Depreciation: $
Record the transactions.
Redhouse Corporation purchased a truck for $20,000 on January 1, 2023. The truck has an estimated salvage value of $5,000 and is expected to last five years. Redhouse Corporation prepares adjusting entries only at year-end. Which of the following is the necessary adjusting entry on December 31, 2023? (See your Chapter 3 notes, page 6) Debit Depreciation Expense—Trucks for $4,000, and credit Accumulated Depreciation—Trucks for $4,000. Debit Depreciation Expense—Trucks for $5,000, and credit Accumulated Depreciation—Trucks for $5,000. Debit Accumulated Depreciation—Trucks for $3,000, and credit Depreciation Expense—Trucks for $3,000. Debit Depreciation Expense—Trucks for $3,000, and credit Accumulated Depreciation—Trucks for $3,000. Debit Accumulated Depreciation—Trucks for $4,000, and credit Depreciation Expense—Trucks for $4,000. Debit Accumulated Depreciation—Trucks for $5,000, and credit Depreciation Expense—Trucks for $5,000.
On June 15, 2024, Perfect Furniture discarded equipment that had a cost of $8,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Jun. 15 Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Gain on Disposal Loss on Disposal Maintenance Expenses Debit Credit
Marigold Industries presents you with the following information. Complete the table for the year ended December 31, 2027. The company depreciates all assets using the half-year convention. (Round answers to O decimal places, e.g. 45,892.) Description Machine A Machine B Machine C Machine D Date Purchased 2/12/25 8/15/24 7/21/23 Cost $148,200 89,600 227,760 (c) Salvage Value $16,640 21,840 25,000 71,760 Life in Years 10 5 8 5 Depreciation Method SL DDB SYD (a) Accumulated Depreciation to 12/31/26 $34,684 30,160 72,800 (e) Depreciation for 2027 (b) (d) (f) (h)
Sarasota Company sells equipment on September 30, 2022, for $20,600 cash. The equipment originally cost $73,300 and as of January 1, 2022, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2022 is $4,750. Prepare the journal entries to (a) update depreciation to September 30, 2022, 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 O for the amounts.) No. Account Titles and Explanation (a) (b) Debit 11 Credit
George Company purchased a van on May 1, 2018 for $800,000. Estimated life of the van was five years, and its estimated residual value was $80,000. George uses the straight line method of depreication. The journal entry to record the depreciation expense for 2019 on the van would include: A) Debit Depreciation expense for $192,000 B) Credit Accumulated Depreciation for $192,000 C) Debit Depreciation expense for $96,000 D) Debit accumulated depreciation for $96,000
Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $39,500. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of depreciation. At December 31, 2018, the truck had a book value of $10,300. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $10,125 b. $6,725 2. How should the gain or loss on disposal be reported on the income statement? 3. Assume that Swann uses IFRS and sold the truck for $10,125. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,000. What journal entries are required to record the sale?
Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sold. Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense. On March 17, 2018, Adkins acquired equipment at a cost of $220,000. The equipment has a residual value of $43,000 and an estimated useful life of 4 years. What amount of depreciation expense will be recorded for the year ending December 31, 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) $44,250 $33,188 $36,875 $22,125
Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, for $22,300. At acquisition Perfect assumed that the car would have an estimated life of 3 years and a residual value of $4,000. Assume that Perfect has recorded straight-line depreciation expense for 2017 and 2018. Required: Prepare the journal entry to record the sale of the car assuming the car sold for (a) $10,100 cash, (b) S7,700 cash, and (c) $11,200 cash. The company recorded the car as equipment.