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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
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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
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