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Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2016.

Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2016.

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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Disposal of Capital Assets Practice Exercises (a) Lui Company purchased equipment in 2009 for $80,000 and estimated an $8,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2015, there was $50,400 in the Accumulated Amortization account for this equipment using the straight-line method of amortization. On March 31, 2016, the equipment was sold for $21,000. Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2016.
Transcribed Image Text:Disposal of Capital Assets Practice Exercises (a) Lui Company purchased equipment in 2009 for $80,000 and estimated an $8,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2015, there was $50,400 in the Accumulated Amortization account for this equipment using the straight-line method of amortization. On March 31, 2016, the equipment was sold for $21,000. Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2016.
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