Question

Sandhill Company purchased equipment in 2020 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2021, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2022, the equipment was sold for $21,000. Prepare the appropriate journal entries to remove the equipment from the books of Sandhill Company on March 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. (To record depreciation expense for the first 3 months of 2022) (To record sale of equipment) e Textbook and Media List of Accounts

Answer 1

Selution ist qutpment = lo4000 Accumulated = 6a200 Dec 31 2020 Dep on (an 2020 to March 2020 Dep loyo00-8000 10 3//2 9600 3/12 2400 Account Erplanatton Date credal Delit 2020 2400 Depredtation al March 3 A cCEimulated dprecioHon 2400 TO ecmdDeprecatlon alooD cash ale Manch 3 Acumulated Dp (6a 3004240) 69600 3400 Lors on sale eapment alc 04000 E9uipment ale Cost 31000 Accaumulakd dep 20000 looo Bok value Salas pace llooo Bok value 1o00 Gotn Lak)

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