Lynn Company owns equipment that cost $120,000 when purchased on January 1, 2018. It has been depreciated using the straight-line method based on estimated salvage value of $15,000 and an estimated useful life of 5 years.Prepare Lynn Company's journal entries to record the sale of the equipment in these four independent situations. (Credit account titlesare automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts.)(a)Sold for $58,000 on January 1, 2021.(b)Sold for $58,000 on May 1, 2021.(c)Sold for $32,000 on January 1, 2021.(d)Sold for $32,000 on October 1, 2021.Date Account Titles and ExplanationDebitCredit(a)

Step 1:(a) The journal entry to record the sale of equipment on January 1, 2021 is provided as…

Answered: Lynn Company owns equipment that cost…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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On July 1, 2014, Sunland Enterprises sold equipment with an original cost of $80,700 for $31,300. The equipment was purchased January 1, 2011, and was depreciated using the straight-line method over a five-year useful life with a $8,600 salvage value. Prepare the journal entry to record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit III
F118.
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