Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $176,530...

Entries for Sale of Fixed Asset

Equipment acquired on January 8 at a cost of $176,530 has an estimated useful life of 17 years, has an estimated residual value of $9,250, 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. Assume that the equipment was sold on April 1 of the fifth year for $129,660.

1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required.

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.

Expert Solution

a)

b)

1.

April 1, 5th year	Depreciation expense A/C Dr.	$2,460
	To Accumulated depreciation A/C		$2,460

2.

April 1, 5th year	Cash A/C Dr.	$1,29,660
	Accumulated depreciation A/C Dr.	$41,631
	Profit and loss (Loss) A/C Dr.	$5,239
	To Equipment A/C		$1,76,530

ekkarill92 answered 6 months ago

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