Required information [The following information applies to the questions displayed below.] New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $320,500. The over originally cost $427,500, had an estimated service life of 10 years, had an estimated residual value of $27,500, and were depreciated using straight-line depreciation. Complete the requirements below for New Deli. 4. Record the sale of the ovens at the end of the third year. (If no entry is required for a transaction/event, select "No Journa Required" in the first account field.)
Required information [The following information applies to the questions displayed below.] New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $320,500. The over originally cost $427,500, had an estimated service life of 10 years, had an estimated residual value of $27,500, and were depreciated using straight-line depreciation. Complete the requirements below for New Deli. 4. Record the sale of the ovens at the end of the third year. (If no entry is required for a transaction/event, select "No Journa Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.]
New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $320,500. The ovens
originally cost $427,500, had an estimated service life of 10 years, had an estimated residual value of $27,500, and were
depreciated using straight-line depreciation. Complete the requirements below for New Deli.
4. Record the sale of the ovens at the end of the third year. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
Record the sale of equipment.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
< Prev
11
of 7
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96754444-8db0-4381-98d5-32976fba1a32%2F92c9babb-3e56-4b9d-b519-6afcc7ef15f0%2Fdw58htw.jpeg&w=3840&q=75)
Transcribed Image Text:Part 4 of 4
eBook
Print
Mc
Graw
Hill
Required information
[The following information applies to the questions displayed below.]
New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $320,500. The ovens
originally cost $427,500, had an estimated service life of 10 years, had an estimated residual value of $27,500, and were
depreciated using straight-line depreciation. Complete the requirements below for New Deli.
4. Record the sale of the ovens at the end of the third year. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
Record the sale of equipment.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
< Prev
11
of 7
Next >
![OBLEMS
Saved
Required information
[The following information applies to the questions displayed below.]
New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $320,500. The ovens
originally cost $427,500, had an estimated service life of 10 years, had an estimated residual value $27,500, and were
depreciated using straight-line depreciation. Complete the requirements below for New Deli.
3. What is the gain or loss on the sale of the ovens at the end of the third year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96754444-8db0-4381-98d5-32976fba1a32%2F92c9babb-3e56-4b9d-b519-6afcc7ef15f0%2Fbo9fx84_processed.jpeg&w=3840&q=75)
Transcribed Image Text:OBLEMS
Saved
Required information
[The following information applies to the questions displayed below.]
New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $320,500. The ovens
originally cost $427,500, had an estimated service life of 10 years, had an estimated residual value $27,500, and were
depreciated using straight-line depreciation. Complete the requirements below for New Deli.
3. What is the gain or loss on the sale of the ovens at the end of the third year?
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