Prepare the journal entries to record the following transactions for Cullumber Wholesale Company, which has a calendar year end and uses the straight-line method of depreciation. (a) On September 30, 2028, the company sold old equipment for $47,700. The equipment was purchased on January 1, 2026 for $99,600 and was estimated to have a $19,200 salvage value at the end of its 5-year life. Depreciation on the equipment has been recorded through December 31, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date September 30, 2028 September 30, 2028 Account Titles and Explanation (To record depreciation expense for the first 9 months of 2028) (To record sale of delivery equipment) Debit Credit
Prepare the journal entries to record the following transactions for Cullumber Wholesale Company, which has a calendar year end and uses the straight-line method of depreciation. (a) On September 30, 2028, the company sold old equipment for $47,700. The equipment was purchased on January 1, 2026 for $99,600 and was estimated to have a $19,200 salvage value at the end of its 5-year life. Depreciation on the equipment has been recorded through December 31, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date September 30, 2028 September 30, 2028 Account Titles and Explanation (To record depreciation expense for the first 9 months of 2028) (To record sale of delivery equipment) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare the journal entries to record the following transactions for Cullumber Wholesale Company, which has a calendar year end and
uses the straight-line method of depreciation.
(a)
On September 30, 2028, the company sold old equipment for $47,700. The equipment was purchased on January 1, 2026 for
$99,600 and was estimated to have a $19,200 salvage value at the end of its 5-year life. Depreciation on the equipment has been
recorded through December 31, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit
entries.)
Date
September 30, 2028
September 30, 2028
Account Titles and Explanation
(To record depreciation expense for the first 9 months
of 2028)
(To record sale of delivery equipment)
Debit
10
Credit
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