Homework Answers
1) Journal entry
| Date | account and explanation | Debit | Credit |
| July 1 | Depreciation expense (72000/5)/2 | 7200 | |
| Accumulated depreciation-equipment | 7200 | ||
| (To record Dep) |
2a) Journal entry
| Date | account and explanation | Debit | Credit |
| July 1 | Cash | 22000 | |
| Accumulated depreciation-equipment (72000/5*3.5) | 50400 | ||
| Gain on sale of equipment | 400 | ||
| Equipment | 72000 | ||
| (To record sale of equipment) |
2b) Journal entry
| Date | account and explanation | Debit | Credit |
| July 1 | Cash | 15000 | |
| Accumulated depreciation-equipment (72000/5*3.5) | 50400 | ||
| Loss on sale of equipment | 6600 | ||
| Equipment | 72000 | ||
| (To record sale of equipment) |
2c) Journal entry
| Date | account and explanation | Debit | Credit |
| July 1 | Accumulated depreciation-equipment (72000/5*3.5) | 50400 | |
| Loss on disposal of equipment | 21600 | ||
| Equipment | 72000 | ||
| (To record disposal of equipment) |
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A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line...
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line...
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under each...
Question 4 (20%) A company purchased and installed equipment on January 1 at a total cost...
Question 4 (20%) A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight- line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of...
2. A company purchased and installed equipment on January 1 at a total cost of $72,000....
2. A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under...
12. (25 Points) A company purchased and installed a machine on January 1, 2015, at a...
12. (25 Points) A company purchased and installed a machine on January 1, 2015, at a total cost of $72,000. Straight-line deprecia tion was calculated based on the assumption of a five-year life and no salvage value. The machine was disposed of on July 31, 2018 depreciation has been done for all periods prior to January 1, 2015). b. Prepare the general journal entry to record the disposal of the machine under each of these three independent situations: (1) The...
Problem 3. A company purchased a cooling system on January 2 for $225,000. The system had...
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Carla Vista Company owns equipment that cost $81,000 when purchased on January 1, 2019. It has...
Carla Vista Company owns
equipment that cost $81,000 when purchased on January 1, 2019. It
has been depreciated using the straight-line method based on an
estimated salvage value of $21,000 and an estimated useful life of
5 years.
Prepare Carla Vista 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 Entry" for the...
Need Help! Sheridan Company owns equipment that cost $72,000 when purchased on January 1, 2019. It has been depreciated...
Need Help!
Sheridan Company owns equipment that cost $72,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $12,000 and an estimated useful life of 5 years. Prepare Sheridan 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 Entry" for the...
Current Attempt in Progress Crane Company owns equipment that cost $85,000 when purchased on January 1,...
Current Attempt in Progress Crane Company owns equipment that cost $85,000 when purchased on January 1, 2019. It has been depreciated using the straight- line method based on an estimated salvage value of $25,000 and an estimated useful life of 5 years. Prepare Crane 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...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $67,200 cash. (2)...
Questions: Nix Company owns equipment that cost $140,000 when purchased on January 1, 2011. It has...
Questions: Nix Company owns equipment that cost $140,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of $14,000 and an estimated useful life of 10 years. (3 Marks) Instructions: Prepare Nix Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (a) Sold for $80,000 on January 1, 2014. (b) Sold for $80,000 on...
Question 4 (20%) A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight- line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of...
2. A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under...
12. (25 Points) A company purchased and installed a machine on January 1, 2015, at a total cost of $72,000. Straight-line deprecia tion was calculated based on the assumption of a five-year life and no salvage value. The machine was disposed of on July 31, 2018 depreciation has been done for all periods prior to January 1, 2015). b. Prepare the general journal entry to record the disposal of the machine under each of these three independent situations: (1) The...
Problem 3. A company purchased a cooling system on January 2 for $225,000. The system had an estimated useful life of 15 years. After using the system for 13 full years, the company completed a renovation of the system at a cost of $33,000 and now expects the system to be more efficient and last 8 years beyond the original estimate. The company uses the straight-line method of depreciation. (a) Prepare the journal entry at January 3, to record the...
Carla Vista Company owns
equipment that cost $81,000 when purchased on January 1, 2019. It
has been depreciated using the straight-line method based on an
estimated salvage value of $21,000 and an estimated useful life of
5 years.
Prepare Carla Vista 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 Entry" for the...
Need Help!
Sheridan Company owns equipment that cost $72,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $12,000 and an estimated useful life of 5 years. Prepare Sheridan 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 Entry" for the...
Current Attempt in Progress Crane Company owns equipment that cost $85,000 when purchased on January 1, 2019. It has been depreciated using the straight- line method based on an estimated salvage value of $25,000 and an estimated useful life of 5 years. Prepare Crane 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...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $67,200 cash. (2)...
Questions: Nix Company owns equipment that cost $140,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of $14,000 and an estimated useful life of 10 years. (3 Marks) Instructions: Prepare Nix Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (a) Sold for $80,000 on January 1, 2014. (b) Sold for $80,000 on...
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