Ehrlich Company purchased equipment in 2015 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2021, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2022, the equipment was sold for $50,000.Prepare the journal entry to record the depreciation from 1/1/22 through 3/31/22.Prepare the journal entry record the sale of the equipment by Ehrlich Company on March 31, 2022.Prepare the journal entry to remove the equipment from the books of Ehrlich Company, assuming the equipment was scrap and unable to be sold

Depreciation exp $3,500.00 To Accumulated Depreciation $3,500.00…

Answered: Ehrlich Company purchased equipment in…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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Ehrlich Company purchased equipment in 2015 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2021, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2022, the equipment was sold for $50,000.
Prepare the journal entry to record the depreciation from 1/1/22 through 3/31/22.
Prepare the journal entry record the sale of the equipment by Ehrlich Company on March 31, 2022.
Prepare the journal entry to remove the equipment from the books of Ehrlich Company, assuming the equipment was scrap and unable to be sold

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