New lithographic equipment, acquired at a cost of $905,600 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $101,880. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.In the first week of the fifth year, on March 4, the equipment was sold for $149,286.2.Journalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart of Accounts for exact wording of account titles. Depreciation by two methods; sale of fixed assetInstructionsChart of AccountsStarting QuestionsJournalJournal2. On March 4, journalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY>Mar. 41Cash149,286.00Accumulated Depletion1,107,005.0023Loss on Sale of Equipment52,119.00↑Equipment905,600.0043. On March 4, journalize the entry to record the sale in (2), assuming that the equipment was sold for $103,386 instead of $149,286. Refer to the Chart of Accounts for exact wording of account titles.2:56 PM86°F9/3. On varcTI 4, journialIZE ine eniry 1o recoru ine saie in (2), assumngunal the equipment waS SOTA TOr DTO3,300 ISTeau or S149,200. Reier 1o tne Chan oI AccounS TOr exact worang or account iieS.021TR.exe - Appliçation Frror2:56 PMTuna bona to a nch86°FCTR.exe - Application Error9/19/2021

The question is based on the concept of business transaction analysis.

Answered: New lithographic equipment, acquired at…

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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New lithographic equipment, acquired at a cost of $905,600 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $101,880. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.

In the first week of the fifth year, on March 4, the equipment was sold for $149,286.

2.	Journalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart of Accounts for exact wording of account titles.