Question

Exercise 9-10 Pryce Company owns equipment that cost $67,350 when purchased on January 1, 2012. It has been depreciated using the straight-line method based on estimated salvage value of $6,000 and an estimated useful life of 5 years. Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 125.) (a) (b) (c) (d) Sold for $37,810 on January 1, 2015. Sold for $37,810 on May 1, 2015. Sold for $10,770 on January 1, 2015. Sold for $10,770 on October 1, 2015. No. Account Titles and Explanation Debit Credit (a) (To record depreciation) (To record sale of equipment)

Answer 1

Answer:

Depreciation
	67,350-6,000/5	12,270	per years\
No	Accounts titles and Explanation	Debit ($)	Credit ($)
a	Cash	37,810
	Accumulated depreciation (12270*3)	36,810
	Equipment		67,350
	Gain on sale of equipment (bal.fig)		7,270
	(To record for sale of equipment)
b	Depreciation expenses (12270*4/12)	4,090
	Accumulated depreciation		4,090
	Cash	37,810
	Accumulated depreciation (12270*3)+4090	40,900
	Equipment		67,350
	Gain on sale of equipment(bal.fig)		11,360
	(To record for sale of equipment)
c	Cash	10,770
	Accumulated depreciation (12270*3)	36,810
	Loss on sale of equipment (bal.fig)	19,770
	Equipment		67,350
	(To record for sale of equipment)
d	Depreciation expenses (12270*9/12)	9,203
	Accumulated depreciation		9,203
	Cash	10,770
	Accumulated depreciation (12270*3)+9203	46,013
	Loss on sale of equipment (bal.fig)	10,568
	Equipment		67,350
	(To record for sale of equipment)