Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $36,750. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $710. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of year 2 for $8,490, determine the gain or loss on the sale of the equipment. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 0000
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $36,750. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $710. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of year 2 for $8,490, determine the gain or loss on the sale of the equipment. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 0000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I put the order in which the choices appear for part C in the drop down section!
Part C.
1.
- Accounts Payable
Accounts Receivable - Cash
Depreciation Expense- Equipment
- Gain on Sale of Equipment
2.
- Accounts Payable
- Accounts Receivable
Accumulated Depreciation -Equipment- Depreciation Expense
- Equipment
- Gain on Sale of Equipment
3.
- Accounts Payable
- Accounts Receivable
- Depreciation Payable
- Depreciation Expense
- Loss on Sale of Equipment
4.
- Accounts Payable
- Accounts Receivable
- Accumulated Depreciation-Equipment
- Depreciation Expense
- Equipment
- Loss on Sale of Equipment
Transcribed Image Text:Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of $36,750. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $710.
a. What was the depreciation for the first year?
b. Assuming the equipment was sold at the end of year 2 for $8,490, determine the gain or loss on the sale of the equipment.
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
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