On April, 1, 2012, Lowery Food Market purchased equipment that cost $27,000. The company expects to use the equipment for 5 years and the expected residual value is $2,000 at the end of the useful life. The company uses straight line depreciation for the equipment. On June, 30, 2014 the company sold the equipment for $10,000. Requirement: a. Make the journal entries for depreciation expense on December 31, 2012. b. Make the journal entries for depreciation expense on December 31, 2013. c. Make the journal entries for the sale of equipment on June 30, 2014

On April, 1, 2012, Lowery Food Market purchased equipment that cost $27,000. The company expects to use the equipment for 5 years and the expected residual value is $2,000 at the end of the useful life. The company uses straight line depreciation for the equipment. On June, 30, 2014 the company sold the equipment for $10,000. Requirement: a. Make the journal entries for depreciation expense on December 31, 2012. b. Make the journal entries for depreciation expense on December 31, 2013. c. Make the journal entries for the sale of equipment on June 30, 2014

Name: Do not give solution in image On April, 1, 2012, Lowery Food Market pu
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Description: Do not give solution in image On April, 1, 2012, Lowery Food Market purchased equipment that cost $22,000. The company expectsto use the equipment for 5 years and the expected residual value is $2,000 at the end of the useful life.The company uses st

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Do not give solution in image

On April, 1, 2012, Lowery Food Market purchased equipment that cost $22,000. The company expects
to use the equipment for 5 years and the expected residual value is $2,000 at the end of the useful life.
The company uses straight line depreciation for the equipment. On June, 30, 2014 the company sold
the equipment for $10,000.
Requirement:
a. Make the journal entries for depreciation expense on December 31, 2012.
b. Make the journal entries for depreciation expense on December 31, 2013.
c. Make the journal entries for the sale of equipment on June 30, 2014

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