Description of this paper

Journalize the entry to record the sale of the equipment

Description

solution


Question

Entries for Sale of Fixed Asset;Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 years, has an estimated residual value of $30,000, and is depreciated by the straight-line method.;a. What was the book value of the equipment at December 31, 2014, the end of the year?;$;b. Assume that the equipment was sold on October 1, 2015, for $275,000.;1. Journalize the entry to record depreciation for the nine months until the sale date.;2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank.

 

Paper#19113 | Written in 18-Jul-2015

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