Homework Help is Here – Start Your Trial Now!
Business
Accounting
Equipment acquired on January 8 at a cost of $136,740 has an estimated useful life of 13 years, has an estimated residual value of $7,000, 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? Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $87,945. 1. Journalize the entry to record depreciation for the three 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 required Feedback 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. Gain on Sale of Equipment x 0000 0000

Equipment acquired on January 8 at a cost of $136,740 has an estimated useful life of 13 years, has an estimated residual value of $7,000, 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? Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $87,945. 1. Journalize the entry to record depreciation for the three 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 required Feedback 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. Gain on Sale of Equipment x 0000 0000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Part B #1

1.

  • Accounts Payable
  • Accumulated Depreciation-Equipment
  • Cash
  • Depreciation Expense-Equipment
  • Equipment
  • Equipment Expense

2.

  • Accounts Payable
  • Accumulated Depreciation-Equipment
  • Cash
  • Depreciation Expense-Equipment
  • Equipment
  • Equipment Expense

Part B #2

1.

  • Accounts Payable
  • Cash
  • Depreciation Expense-Equipment
  • Equipment
  • Gain on Sale of Equipment

2.

  • Accounts Payable
  • Accumulated Depreciation-Equipment
  • Depreciation Expense-Equipment
  • Equipment
  • Gain on Sale of Equipment

3.

  • Accounts Receivable
  • Depreciation Expense-Equipment
  • Equipment
  • Loss on Sale of Equipment
  • Depreciation Payable-Equipment

4.

  • Accumulated Depreciation-Equipment
  • Equipment
  • Equipment Expense
  • Gain on Sale of Equipment
  • Loss on Sale of Equipment
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $136,740 has an estimated useful life of 13 years, has an estimated residual value of $7,000, 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? Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $87,945. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave blank. Round your answers to the nearest whole dollar if required. Feedback 2. Journalize the entry to record the sale the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Gain on Sale of Equipment x Feedback Feedback
Transcribed Image Text:Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $136,740 has an estimated useful life of 13 years, has an estimated residual value of $7,000, 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? Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $87,945. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave blank. Round your answers to the nearest whole dollar if required. Feedback 2. Journalize the entry to record the sale the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Gain on Sale of Equipment x Feedback Feedback
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Audit procedures for items of Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS