Sunland Company owns equipment that cost $81,000 when purchased on January 2, 2021. It has been depreciated using the straight-line method based on estimated residual value of $3,000 and an estimated useful life of five years. Following are the four independent situations.     Prepare Sunland Company’s journal entry to record the sale of the equipment for $38,000 on January 2, 2024 Prepare Sunland Company’s journal entry to record the sale of the equipment for $38,000 on May 1, 2024. Prepare Sunland Company’s journal entry to record the sale of the equipment for $18,700 on January 2, 2024

Q: On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process.…

A: Straight line method: Under the straight line method of depreciation, the same amount of…

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $77,400. The…

A: Given information:

Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $78,400. The…

A: Approach to solving the question:Required (a): Prepare journal entries for this equipment for the…

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A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: Loss on sale of equipment = Sale value - Net book value of equipment

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: 1. Date Account Titles and Explanation Debit Credit July 15, 2021 Cash $750,000…

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A: Journal entries are the official records of financial transactions conducted by a firm or an…

Q: 1. Which depreciation method is the company using in each example? 2. Compute the depreciation…

A: (1). N Company purchased as asset for $17,000 on January 2, 2021. The asset has an expected residual…

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A: Depreciation  under straight line method = (Cost of Asset - Salvage value / useful life )…

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A: Revaluation of depreciation is used in an organization where a corporation evaluates and changes the…

Q: Brunswick Manufacturing owns one piece of equipment. The equipment was purchased on January 1, 2019…

A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease in the…

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: INTRODUCTION: A patent is a license or legal instrument that grants the exclusive/sole right to…

Q: Rayya Company purchases a machine for $201,600 on January 1, 2021. Straight-line depreciation is…

A: Depreciation: It can be defined as a gradual reduction or decrease in the total acquisition cost of…

Q: On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process.…

A: ANSWER 1)Purchase date of Equipment =January 2,2021 Estimated life of equipment=8 Estimated residual…

Q: Ehrlich Company purchased equipment in 2015 for $150,000 and estimated a $10,000 salvage value at…

A: Depreciation exp  $3,500.00               To Accumulated Depreciation   $3,500.00…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: Sum of the years digits = n(n+1)/2 Sum of the years digits =  8(8+1)/2 Sum of the years digits =…

Q: Great Value Company purchased equipment on January 1, 2020, for $75,000, with an estimated useful…

A: Given, Jan 1 2020 Purchase price = $75000 Life = 7 years Residual value = $ 5000 Sold @ July 1 2022

Q: On October 1, 2021, Hess Company places a new asset into service. The cost of the asset is $120,000…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

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.