On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque more Corporation for $910,000 and $405,000, respectively. On the date of the sale, the book value of the patent was $ $200,000, and the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000) Prepare the journal entries to record the sales of the patent and equipment 1 2 Record the sale of the equipment for $405,000. On the date of the sale, the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000).
On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque more Corporation for $910,000 and $405,000, respectively. On the date of the sale, the book value of the patent was $ $200,000, and the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000) Prepare the journal entries to record the sales of the patent and equipment 1 2 Record the sale of the equipment for $405,000. On the date of the sale, the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque
more Corporation for $910,000 and $405,000, respectively. On the date of the sale,
the book value of the patent was $ $200,000, and the book value of the equipment
was $496,000 (cost of $726,000 less accumulated depreciation of $230,000)
Prepare the journal entries to record the sales of the patent and equipment
< 1
2
Record the sale of the equipment for $405,000. On the date of the sale, the
book value of the equipment was $496,000 (cost of $726,000 less
accumulated depreciation of $230,000).
Note: Enter debits before credits.
Event
2
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44898b61-7c2e-425a-ad3f-5fd9ca6ecc5d%2Fb7fceb91-75d4-4d6c-8e4f-200fd65fa860%2Fclc9wnf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque
more Corporation for $910,000 and $405,000, respectively. On the date of the sale,
the book value of the patent was $ $200,000, and the book value of the equipment
was $496,000 (cost of $726,000 less accumulated depreciation of $230,000)
Prepare the journal entries to record the sales of the patent and equipment
< 1
2
Record the sale of the equipment for $405,000. On the date of the sale, the
book value of the equipment was $496,000 (cost of $726,000 less
accumulated depreciation of $230,000).
Note: Enter debits before credits.
Event
2
General Journal
Debit
Credit
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