Prepare the journal entries to record the following transactions for Sunland Wholesale Company, which has a calendar year end and uses the straight-line method of depreciation. - Your answer is partially correct. On September 30, 2028, the company sold old equipment for $42,800. The equipment was purchased on January 1, 2026 for $89.400 and was estimated to have a $14,100 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.) Account Titles and Explanation Date September 30, 2028 September 30, 2028 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense for the first 9 months of 2028) Cash Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment (To record sale of delivery equipment) Debit 64,935 42,800 37,650 8,950 Credit 64,935 89,400

Prepare the journal entries to record the following transactions for Sunland Wholesale Company, which has a calendar year end and uses the straight-line method of depreciation. - Your answer is partially correct. On September 30, 2028, the company sold old equipment for $42,800. The equipment was purchased on January 1, 2026 for $89.400 and was estimated to have a $14,100 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.) Account Titles and Explanation Date September 30, 2028 September 30, 2028 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense for the first 9 months of 2028) Cash Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment (To record sale of delivery equipment) Debit 64,935 42,800 37,650 8,950 Credit 64,935 89,400

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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