Required information Exercise 7-17A Record the sale of equipment (LO7-6) [The following information applies to the questions displayed below.) Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account. Exercise 7-17A Part 2 2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale. (If no entry is required for a particular ransaction/event, select "No Journal Entry Required" in the first account field.) View transaction list
Required information Exercise 7-17A Record the sale of equipment (LO7-6) [The following information applies to the questions displayed below.) Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account. Exercise 7-17A Part 2 2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale. (If no entry is required for a particular ransaction/event, select "No Journal Entry Required" in the first account field.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Required information
Exercise 7-17A Record the sale of equipment (LO7-6)
[The following information applies to the questions displayed below.]
Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded
depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in
the Equipment account.
Exercise 7-17A Part 2
2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale. (If no entry is required for a particular
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe532dca1-7599-4572-b563-8544112a67ac%2Feffb025f-037e-44f4-ab66-774e649986c4%2Fqtnlc6c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 7-17A Record the sale of equipment (LO7-6)
[The following information applies to the questions displayed below.]
Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded
depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in
the Equipment account.
Exercise 7-17A Part 2
2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale. (If no entry is required for a particular
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
Transcribed Image Text:Journal entry worksheet
<
1
Record the sale of equipment.
Note: Enter debits before credits.
Transaction
1
General Journal
Cash
Accumulated Depreciation
Loss
Equipment
Debit
13,600
23,400
Credit
42,000
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