Marigold Company owns equipment that cost $79,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $7,900 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Marigold Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter for the amounts) (a) Sold for $45,000 on January 1, 2022. (b) Sold for $45,000 on April 1, 2022. (c) Sold for $17,000 on January 1, 2022. (d) Sold for $17,000 on September 1, 2022. (e) Repeat (a), assuming Marigold uses double-declining balance depreciation. Repeat (c), assuming Marigold uses double-declining balance depreciation. (0) SR. Account Titles and Explanation (a) (b) (c) (To record depreciation) (To record sale of Equipment) Debit Credit 0000 0000 000 0000 0000 0000

Marigold Company owns equipment that cost $79,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $7,900 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Marigold Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter for the amounts) (a) Sold for $45,000 on January 1, 2022. (b) Sold for $45,000 on April 1, 2022. (c) Sold for $17,000 on January 1, 2022. (d) Sold for $17,000 on September 1, 2022. (e) Repeat (a), assuming Marigold uses double-declining balance depreciation. Repeat (c), assuming Marigold uses double-declining balance depreciation. (0) SR. Account Titles and Explanation (a) (b) (c) (To record depreciation) (To record sale of Equipment) Debit Credit 0000 0000 000 0000 0000 0000

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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