Part C1 and C2 C1 Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) C2 Assume that this equipment account represents the cost of 5 identical machines. Prepare the journal entry for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2019, for $60,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019:
Part C1 and C2
C1
Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
C2
Assume that this equipment account represents the cost of 5 identical machines. Prepare the
The
| December 31, 2020 | December 31, 2019 | ||||
| Equipment, less |
$ | 273,375 | $ | 334,125 |
Journal entries are used to keep track of financial transactions. To create a journal entry, you enter transaction data into your company's books. Your journal entries are entered into the ledger accounts in the second step of the accounting cycle. Every general ledger journal entry will include the transaction date, amount, affected accounts with account information, and a description. A reference number, such as a check number, and a brief description of the transaction may also be included in the journal entry.
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