KOn January 2, 2023, Royal Pet purchased fixtures for $29,600 cash, expecting the fixtures to remain in service for nine years. Royal Pet has depreciated the fixtures on a straight-line basis, with$8,000 residual value. On April 30, 2025, Royal Pet sold the fixtures for $17,500 cash. Record both depreciation expense for 2025 and sale of the fixtures on April 30, 2025. (Assume themodified half-month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)Begin by recording the depreciation expense as of Apr. 30, 2025.DateApr. 30Accounts and ExplanationDebitCredit

The first step is to calculate the annual depreciation expense. The straight-line method of…

Answered: K On January 2, 2023, Royal Pet…

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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On January 2, 2023, Lotus Spa purchased fixtures for $57,600 cash, expecting the fixtures to remain in service for nine years. Lotus Spa has depreciated the fixtures on a straight-line basis, with $9,000 residual value. On April 30, 2025, Lotus Spa sold the fixtures for $39,500 cash. Record both depreciation expense for 2025 and sale of the fixtures on April 30, 2025. (Assume the modified half-month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Apr. 30 Accounts and Explanation Debit Credit Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures. (Enter a loss with a minus sign or parentheses.) Fair value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Now, record the sale of the fixtures on April 30, 2025. Date Apr. 30 Accounts and Explanation Debit Credit
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