Crane Company sells equipment on March 31, 2024, for $33,590 cash. The equipment was purchased on January 5, 2021, at a cost of $82,000, and had an estimated useful life of five years and a residual value of $3,100. Crane Company uses straight-line depreciation for equipment. Adjusting journal entries are made annually at the company's year end, December 31.
Crane Company sells equipment on March 31, 2024, for $33,590 cash. The equipment was purchased on January 5, 2021, at a cost of $82,000, and had an estimated useful life of five years and a residual value of $3,100. Crane Company uses straight-line depreciation for equipment. Adjusting journal entries are made annually at the company's year end, December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Do not give answer in image formate
Transcribed Image Text:(b)
Prepare the journal entry to record the sale of the equipment. (Credit 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 0 for the amounts. List all debit
entries before credit entries.)
Date Account Titles
Mar.
31
Cash
Accumulated Depreciation - Equipment
Equipment
Gain on Disposal
Debit
eTextbook and Media
List of Accounts.
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(c)
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Transcribed Image Text:Crane Company sells equipment on March 31, 2024, for $33,590 cash. The equipment was purchased on
January 5, 2021, at a cost of $82,000, and had an estimated useful life of five years and a residual value of
$3,100. Crane Company uses straight-line depreciation for equipment. Adjusting journal entries are made
annually at the company's year end, December 31.
(a)
Your answer is correct.
Prepare the journal entry to update depreciation to March 31, 2024. (Credit 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 0 for the amounts. List debit entry
before credit entry.)
Titles
iation Expense
nulated Depreciation - Equipment
eTextbook and Media
Debit
3945
Credit
3945
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