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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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