Entries for sale of fixed asset Equipment acquired on January 8 at a cost of $189,200 has an estimated useful life of 20 years, has an estimated residual value of $9,000, 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? $ 153,160 Feedback Check My Work Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assuming that the equipment was sold on April 1 of the fifth year for $145,157. 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 Depreciation Expense-Equipment Accumulated Depreciation-Equipment Debit Credit x X 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. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
icon
Related questions
Question

help pls

Entries for sale of fixed asset
Equipment acquired on January 8 at a cost of $189,200 has an estimated useful life of 20 years, has an estimated residual
value of $9,000, 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?
$ 153,160
Feedback
Check My Work
Book value is the initial cost of the fixed asset minus the accumulated depreciation.
b. Assuming that the equipment was sold on April 1 of the fifth year for $145,157.
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
Depreciation Expense-Equipment
Accumulated Depreciation-Equipment
Debit
Credit
x
X
Transcribed Image Text:Entries for sale of fixed asset Equipment acquired on January 8 at a cost of $189,200 has an estimated useful life of 20 years, has an estimated residual value of $9,000, 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? $ 153,160 Feedback Check My Work Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assuming that the equipment was sold on April 1 of the fifth year for $145,157. 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 Depreciation Expense-Equipment Accumulated Depreciation-Equipment Debit Credit x X
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.
Cash
Accumulated Depreciation-Equipment
Loss on Sale of Equipment
Equipment
Transcribed Image Text: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. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning