Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $175,000. The residual value of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $48,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: D 1. Prepare the Journal entry to record the sale. 2. Assuming that Howarth had Instead used the double-declining-balance method, prepare the Journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $175,000. The residual value
of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31,
2024, for $48,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year
depreciation is calculated based on the number of months the asset is in service.
Required:
D
1. Prepare the Journal entry to record the sale.
2. Assuming that Howarth had Instead used the double-declining-balance method, prepare the Journal entry to
record the sale.
Complete this question by entering your answers in the tabs below.
Required 1
Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roun
intermediate calculation. Round your final answers to the nearest whole dollar amount.
Required 2
View transaction list
No
1
Event
1
View journal entry worksheet
Cash
General Journal
Accumulated depreciation-equipment
Gain on sale of equipment
Equipment
Debit
48,000
Credit
41.196
Ⓡ
Transcribed Image Text:Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $175,000. The residual value of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $48,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: D 1. Prepare the Journal entry to record the sale. 2. Assuming that Howarth had Instead used the double-declining-balance method, prepare the Journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roun intermediate calculation. Round your final answers to the nearest whole dollar amount. Required 2 View transaction list No 1 Event 1 View journal entry worksheet Cash General Journal Accumulated depreciation-equipment Gain on sale of equipment Equipment Debit 48,000 Credit 41.196 Ⓡ
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