Question

Financial Account Be nyh ed e r 2010 for $100.000 andmed 8.000 ge h end of the 10 year December 2016 w ere acprate journals to remove the comment from the books of Faster Company on March 31, 2017 the amount is entered the modentlyI is required to try for the cente acc r e sare for the a l e d Crede (To record d e pe for the 2017

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1.	Depreciation Expense (Note 1)	$2,400
	Accumulated Depreciation -Equipment		$2,400
	(To record depreciation expense for first 3 months of 2017)
2.	Cash	$21,000
	Loss on Sale of Equipment	$13,400
	Accumulated Depreciation – Equipment (Note 2)	$69,600
	Equipment		$104,000
	(To record sale of equipment)

Working Notes:

Note 1: Depreciation Expense for 3 months of 2017:

= [(Actual Cost – Salvage Value)/Useful Life] x 3/12

= $(104,000 – 8,000)/10 years x 3/12 = $2,400

Note 2: Accumulated Depreciation at the time of sale of Equipment:

= Balance as stood on 31^st December 2016 + Depreciation Expense for 3 months of 2017

= $(67,200 + 2,400) = $69,600