Current Attempt in Progress Oriole Company owns equipment that cost $100,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $4,000 and an estimated useful life of five years. Following are the four independent situations. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $45,400 on January 2, 2027. (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 O for the amounts. List oll debit entries before credit entries) Date Account Titles Jan. 2 Save for Later Debit Credit Attempts: 0 of 1 used Submit Answer
Current Attempt in Progress Oriole Company owns equipment that cost $100,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $4,000 and an estimated useful life of five years. Following are the four independent situations. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $45,400 on January 2, 2027. (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 O for the amounts. List oll debit entries before credit entries) Date Account Titles Jan. 2 Save for Later Debit Credit Attempts: 0 of 1 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Bhuro
Transcribed Image Text:Current Attempt in Progress
Oriole Company owns equipment that cost $100,000 when purchased on January 2, 2024. It has been depreciated using the straight-
line method based on estimated residual value of $4,000 and an estimated useful life of five years.
Following are the four independent situations.
(a)
Prepare Oriole Company's journal entry to record the sale of the equipment for $45,400 on January 2, 2027. (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 O for the amounts. List oll debit entries before credit entries)
Date Account Titles
Jan. 2
Save for Later
Debit
Credit
Attempts: 0 of 1 used
Submit Answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education