Required information [The following information applies to the questions displayed below.] Freeman Landscaping purchased a tractor at a cost of $34,000 and sold it three years later for $16,700. Freeman recorded depreciation using the straight-line method, a five-year service life, and a $1,500 residual value. Tractors are included in the Equipment account. Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required first account field.)
Required information [The following information applies to the questions displayed below.] Freeman Landscaping purchased a tractor at a cost of $34,000 and sold it three years later for $16,700. Freeman recorded depreciation using the straight-line method, a five-year service life, and a $1,500 residual value. Tractors are included in the Equipment account. Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required first account field.)
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
[The following information applies to the questions displayed below.]
Freeman Landscaping purchased a tractor at a cost of $34,000 and sold it three years later for
$16,700. Freeman recorded depreciation using the straight-line method, a five-year service life, and a
$1,500 residual value. Tractors are included in the Equipment account.
Required:
1. 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
No
1
View journal entry worksheet
Transaction
1
Cash
Accumulated Depreciation
Loss
Equipment
General Journal
T
Check my worl
Debit
10,300
19,500
4,200
Credit
34,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F250cd2b0-96da-400a-923c-2108262cd9b4%2F82b9959b-b03a-41c5-9660-46acb0eda0ea%2Fzgygbtr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Freeman Landscaping purchased a tractor at a cost of $34,000 and sold it three years later for
$16,700. Freeman recorded depreciation using the straight-line method, a five-year service life, and a
$1,500 residual value. Tractors are included in the Equipment account.
Required:
1. 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
No
1
View journal entry worksheet
Transaction
1
Cash
Accumulated Depreciation
Loss
Equipment
General Journal
T
Check my worl
Debit
10,300
19,500
4,200
Credit
34,000
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