Question

Sandhill Company owns equipment that cost $82,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $22,000 and an estimated useful life of 5 years. Prepare Sandhill Company's journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No (a) Sold for $47,000 on January 1, 2022. (b) Sold for $47,000 on May 1, 2022. (c) Sold for $23,000 on January 1, 2022 (d) Sold for $23,000 on October 1, 2022. No. Account Titles and Explanation Debit Credit (To record depreciation) (To record sale of equipment) (To record depreciation) To record sale of equiment

Answer 1

Journal entries

No	General Journal	Debit	Credit
a	Cash	47000
	Accumulated depreciation-equipment (82000-22000/5*3)	36000
	Gain on sale of equipment		1000
	Equipment		82000
b	Depreciation expense (82000-22000/5)*4/12	4000
	Accumulated depreciation-equipment		4000
	(To record depreciation)
	Cash	47000
	Accumulated depreciation-equipment	40000
	Gain on sale of equipment		5000
	Equipment		82000
	(to record sale of equipment)
c	Cash	23000
	Accumulated depreciation-equipment	36000
	Loss on sale of equipment	23000
	Equipment		82000
d	Depreciation expense (82000-22000/5)*9/12	9000
	Accumulated depreciation-equipment		9000
	(To record Dep)
	Cash	23000
	Accumulated depreciation-equipment	45000
	Loss on sale of equipment	14000
	Equipment		82000
	(To record sale of equipment)