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 titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and 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 Explanation Debit Credit (a) (b) (To record depreciation expense) (c) (To record disposal of equipment at a gain) (d) (To record depreciation expense)

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 titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and 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 Explanation Debit Credit (a) (b) (To record depreciation expense) (c) (To record disposal of equipment at a gain) (d) (To record depreciation expense)

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 9P: At the end of 2020, while auditing Sandlin Companys books, before the books have been closed, you...

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