Equipment acquired on January 5 at a cost of $158,670, has an estimated useful life of 16 years, has an estimated residual value of $9,550, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assuming that the equipment was sold on April 1 of the fifth year for 112,715. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. Depreciation Expense-Equipment Accumulated Depreciation-Equipment 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment

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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...
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Entries for Sale of Fixed Asset
Equipment acquired on January 5 at a cost of $158,670, has an estimated useful life of 16 years, has an estimated residual value of $9,550, and is depreciated by the
straight-line method.
a. What was the book value of the equipment at December 31 the end of the fourth year?
$
b. Assuming that the equipment was sold on April 1 of the fifth year for 112,715.
1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required.
Depreciation Expense-Equipment
Accumulated Depreciation-Equipment
2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.
Cash
Accumulated Depreciation-Equipment
Loss on Sale of Equipment
Equipment
Transcribed Image Text:Entries for Sale of Fixed Asset Equipment acquired on January 5 at a cost of $158,670, has an estimated useful life of 16 years, has an estimated residual value of $9,550, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ b. Assuming that the equipment was sold on April 1 of the fifth year for 112,715. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. Depreciation Expense-Equipment Accumulated Depreciation-Equipment 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment
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