Entries for sale of fixed asset Equipment acquired on January 8 at a cost of $125,920 has an estimated useful life of 14 years, has an estimated residual value of $8,600, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assuming that the equipment was sold on April 1 of the fifth year for $85,120. 1. Journalize the entry to record depreciation for the 3 months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. Account Debit Credit 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Entries for sale of fixed asset
S
Equipment acquired on January 8 at a cost of $125,920 has an estimated useful life of 14 years, has an estimated residual value of $8,600, and is depreciated by the straight-line
method.
Show Me How
What was the book value of the equipment at December 31 the end of the fourth year?
Account
b. Assuming that the equipment was sold on April 1 of the fifth year for $85,120.
1. Journalize the entry to record depreciation for the 3 months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the
nearest whole dollar if required.
Debit Credit
Print Item
0000
8
2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.
0000
Transcribed Image Text:eBook Entries for sale of fixed asset S Equipment acquired on January 8 at a cost of $125,920 has an estimated useful life of 14 years, has an estimated residual value of $8,600, and is depreciated by the straight-line method. Show Me How What was the book value of the equipment at December 31 the end of the fourth year? Account b. Assuming that the equipment was sold on April 1 of the fifth year for $85,120. 1. Journalize the entry to record depreciation for the 3 months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. Debit Credit Print Item 0000 8 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. 0000
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