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On January 2, 2021, Sonoma - Maine Furniture purchased display shelving for $8,700 cash, expecting the shelvi to remain in service for five years. Sonoma - Maine depreciated the shelving on a double-declining-balance basis with $1,600 estimated residual value. On August 31, 2022, the company sold the shelving for $2,500 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Aug 31 $ Date Journal Entry Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures $ Debit Accounts Aug 31 Accumulated Depreciation-Fixtures 1,392 Show how to compute the gain or loss on the disposal of the shelving. (Use a minus sign or parentheses for a lo Book value Sales proceeds 2,500 3,828 Now record the sale of the shelving on August 31, 2022. Journal Entry Debit $ I 4,872 Credit 1,392 Gain (Loss) on sale (1,328) Credit

On January 2, 2021, Sonoma - Maine Furniture purchased display shelving for $8,700 cash, expecting the shelvi to remain in service for five years. Sonoma - Maine depreciated the shelving on a double-declining-balance basis with $1,600 estimated residual value. On August 31, 2022, the company sold the shelving for $2,500 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Aug 31 $ Date Journal Entry Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures $ Debit Accounts Aug 31 Accumulated Depreciation-Fixtures 1,392 Show how to compute the gain or loss on the disposal of the shelving. (Use a minus sign or parentheses for a lo Book value Sales proceeds 2,500 3,828 Now record the sale of the shelving on August 31, 2022. Journal Entry Debit $ I 4,872 Credit 1,392 Gain (Loss) on sale (1,328) Credit

FINANCIAL ACCOUNTING
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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On January 2, 2021, Sonoma - Maine Furniture purchased display shelving for $8,700 cash, expecting the shelving to remain in service for five years. Sonoma - Maine depreciated the shelving on a double-declining-balance basis, with $1,600 estimated residual value. On August 31, 2022, the company sold the shelving for $2,500 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Aug 31 $ Journal Entry Date Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures Now record the sale of the shelving on August 31, 2022. Journal Entry Aug 31 Debit Show how to compute the gain or loss on the disposal of the shelving. (Use a minus sign or parentheses for a loss.) Sales proceeds Book value 3,828 2,500 Accounts Accumulated Depreciation-Fixtures 1,392 = Debit ▼ H 4,872 Credit 1,392 Gain (Loss) on sale (1,328) Credit
Transcribed Image Text:On January 2, 2021, Sonoma - Maine Furniture purchased display shelving for $8,700 cash, expecting the shelving to remain in service for five years. Sonoma - Maine depreciated the shelving on a double-declining-balance basis, with $1,600 estimated residual value. On August 31, 2022, the company sold the shelving for $2,500 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Aug 31 $ Journal Entry Date Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures Now record the sale of the shelving on August 31, 2022. Journal Entry Aug 31 Debit Show how to compute the gain or loss on the disposal of the shelving. (Use a minus sign or parentheses for a loss.) Sales proceeds Book value 3,828 2,500 Accounts Accumulated Depreciation-Fixtures 1,392 = Debit ▼ H 4,872 Credit 1,392 Gain (Loss) on sale (1,328) Credit
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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