On January 2, 2014, Pet Haven purchased fixtures for $32,400 cash, expecting the fixtures to remain in service for eight years. Pet Haven has depreciated the fixtures on a straight-line basis, with $6,000 residual value. On May 31, 2016, Pet Haven sold the fixtures for $22,925 cash. Record both depreciation expense for 2016 and sale of the fixtures on May 31, 2016. (Assume the modified half-month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by recording the depreciation expense for 2016. Date Jul. 31 Gain or (Loss) Accounts and Explanation Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Now, record the sale of the fixtures on July 31, 2016. Date Jul. 31 Debit Accounts and Explanation Credit Debit Credit

On January 2, 2014, Pet Haven purchased fixtures for $32,400 cash, expecting the fixtures to remain in service for eight years. Pet Haven has depreciated the fixtures on a straight-line basis, with $6,000 residual value. On May 31, 2016, Pet Haven sold the fixtures for $22,925 cash. Record both depreciation expense for 2016 and sale of the fixtures on May 31, 2016. (Assume the modified half-month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by recording the depreciation expense for 2016. Date Jul. 31 Gain or (Loss) Accounts and Explanation Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Now, record the sale of the fixtures on July 31, 2016. Date Jul. 31 Debit Accounts and Explanation Credit Debit Credit

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Description: On January 2, 2014, Pet Haven purchased fixtures for $32,400 cash, expecting the fixtures to remain in service for eight years. Pet Haven has depreciated the fixtures on a straight-line basis, with$6,000 residual value. On May 31, 2016, Pet Haven so

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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