Wildhorse Company owns equipment that cost $121,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $12,100 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Wildhorse Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $73,000 on January 1, 2022. (b) Sold for $73,000 on April 1, 2022. (c) Sold for $25,500 on January 1, 2022. (d) Sold for $25,500 on September 1, 2022. (e) Repeat (a), assuming Wildhorse uses double-declining balance depreciation. (f) Repeat (c), assuming Wildhorse uses double-declining balance depreciation. SR. Account Titles and Explanation (a) | Debit Credit

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Wildhorse Company owns equipment that cost $121,000 when purchased on January 1, 2019. It has been depreciated using the
straight-line method based on an estimated salvage value of $12,100 and an estimated useful life of 5 years. Depreciation expense
adjustments are recognized annually.
Instructions:
Prepare Wildhorse Company's journal entries to record the sale of the equipment in these four independent situations. Update
depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
(a)
Sold for $73,000 on January 1, 2022.
(b)
Sold for $73,000 on April 1, 2022.
(c)
Sold for $25,500 on January 1, 2022.
(d)
Sold for $25,500 on September 1, 2022.
(e)
Repeat (a), assuming Wildhorse uses double-declining balance depreciation.
(f)
Repeat (c), assuming Wildhorse uses double-declining balance depreciation.
SR. Account Titles and Explanation
(a)
|
Debit
Credit
Transcribed Image Text:Wildhorse Company owns equipment that cost $121,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $12,100 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Wildhorse Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $73,000 on January 1, 2022. (b) Sold for $73,000 on April 1, 2022. (c) Sold for $25,500 on January 1, 2022. (d) Sold for $25,500 on September 1, 2022. (e) Repeat (a), assuming Wildhorse uses double-declining balance depreciation. (f) Repeat (c), assuming Wildhorse uses double-declining balance depreciation. SR. Account Titles and Explanation (a) | Debit Credit
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