On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $930,000 and $415,000, respectively. On the date of the sale, the book value of the patent was $ $210,000, and the book value of the equipment was $508,000 (cost of $748,000 less accumulated depreciation of $240,000) Prepare the journal entries to record the sales of the patent and equipment. **Journal Entry Worksheet****Step 2**"Record the sale of the equipment for $415,000. On the date of the sale, the book value of the equipment was $508,000 (cost of $748,000 less accumulated depreciation of $240,000)." ### Journal Entry Worksheet#### Section 1**Instruction:**- Record the sale of the patent for $930,000. On the date of the sale, the book value of the patent was $210,000.---**Note:**- Enter debits before credits.---This section guides students through the process of recording a journal entry for the sale of a patent. The patent was sold for $930,000, and at the time of the sale, its book value was $210,000. This information is essential for accurately reflecting the transaction in the accounting records.#### Navigation:- Use the left and right arrows to navigate between sections 1 and 2 of the worksheet.This journal entry assignment helps students practice the real-world application of accounting principles related to asset sales and book value considerations.

Loss on sale of equipment = Sale value - Net book value of equipment

Answered: On July 15, 2021, Cottonwood Industries…

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 July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $930,000 and $415,000, respectively. On the date of the sale, the book value of the patent was $ $210,000, and the book value of the equipment was $508,000 (cost of $748,000 less accumulated depreciation of $240,000)

Prepare the journal entries to record the sales of the patent and equipment.

**Journal Entry Worksheet**

**Step 2**

"Record the sale of the equipment for $415,000. On the date of the sale, the book value of the equipment was $508,000 (cost of $748,000 less accumulated depreciation of $240,000)."

### Journal Entry Worksheet

#### Section 1

**Instruction:**
- Record the sale of the patent for $930,000. On the date of the sale, the book value of the patent was $210,000.

---

**Note:**
- Enter debits before credits.

---

This section guides students through the process of recording a journal entry for the sale of a patent. The patent was sold for $930,000, and at the time of the sale, its book value was $210,000. This information is essential for accurately reflecting the transaction in the accounting records.

#### Navigation:
- Use the left and right arrows to navigate between sections 1 and 2 of the worksheet.

This journal entry assignment helps students practice the real-world application of accounting principles related to asset sales and book value considerations.

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