Equipment acquired on January 8 at a cost of $110,670, has an estimated useful life of 14 years, has an estimated residual value of $8,050, 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? $ 29,320 x 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 74,472. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. Depreciation Expense-Equipment v 1,833 Accumulated Depreciation-Equipment 1,833 V Feedback ▼ Check My Work The depreciation account of the fixed asset being sold or discarded needs to be updated to reflect the months of use in the year it is being discarded or sold. The straight-line method of depreciation calculates the amount of depreciation to be recognized each year. 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 v 74,472 V Accumulated Depreciation-Equipment 36,650 X Equipment x 110,670 X Gain on Sale of Equipment X 452 X
Equipment acquired on January 8 at a cost of $110,670, has an estimated useful life of 14 years, has an estimated residual value of $8,050, 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? $ 29,320 x 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 74,472. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. Depreciation Expense-Equipment v 1,833 Accumulated Depreciation-Equipment 1,833 V Feedback ▼ Check My Work The depreciation account of the fixed asset being sold or discarded needs to be updated to reflect the months of use in the year it is being discarded or sold. The straight-line method of depreciation calculates the amount of depreciation to be recognized each year. 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 v 74,472 V Accumulated Depreciation-Equipment 36,650 X Equipment x 110,670 X Gain on Sale of Equipment X 452 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I don't understand why I have the book value wrong as well as the jounalized transactions
Transcribed Image Text:Equipment acquired on January 8 at a cost of $110,670, has an estimated useful life of 14 years, has an estimated residual value of $8,050, 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?
$
29,320 x
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 74,472.
1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required.
Depreciation Expense-Equipment v
1,833
Accumulated Depreciation-Equipment
1,833 V
Feedback
▼ Check My Work
The depreciation account of the fixed asset being sold or discarded needs to be updated to reflect the months of use in the year it is being discarded or sold. The straight-line method of
depreciation calculates the amount of depreciation to be recognized each year.
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 v
74,472 V
Accumulated Depreciation-Equipment
36,650 X
Equipment x
110,670 X
Gain on Sale of Equipment X
452 X
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