Homework Answers
ANSWER
The entries necessary required to be recorded in 2015 and 2016 on the book of company P to account for the purchase and sale of the equipment should be prepared as follows:
| Date | Particulars | Debit($) | Credit($) |
| 2015 | Equipment | 614,400 | |
| Cash | 614,400 | ||
| Depreciation expense | 102,400 | ||
| Accumulated Depreciation | 102,400 | ||
| 2016 | |||
| Cash | 565,600 | ||
| Accumulated Depreciation | 102,400 | ||
| Equipment | 614,400 | ||
| Gain on Sale of Equipment | 53,600 | ||
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