Exercise 2 A metal recycling equipment was purchased on Mar 01, 2016 at 150,000 with an estimated residual value of 12,600 and a useful life of 10 years. The company uses calendar year, December 31 to prepare its financial statements. a. Assume that on Aug 01, 2020, it was sold for 75,500. Prepare the journal entry to record the sale. b. Assume instead that it was sold on Nov 01, 2022 at 104,000. Prepare the journal entry to record the sale.

Exercise 2 A metal recycling equipment was purchased on Mar 01, 2016 at 150,000 with an estimated residual value of 12,600 and a useful life of 10 years. The company uses calendar year, December 31 to prepare its financial statements. a. Assume that on Aug 01, 2020, it was sold for 75,500. Prepare the journal entry to record the sale. b. Assume instead that it was sold on Nov 01, 2022 at 104,000. Prepare the journal entry to record the sale.

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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Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
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