Question

Question 6 --/2 View Policies Current Attempt in Progress Sunland Company owns equipment that cost $80,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $20,000 and an estimated useful life of 5 years. Prepare Sunland 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 account titles and enter for the amounts.) (a) Sold for $45,000 on January 1, 2022. (b) Sold for $45,000 on May 1, 2022. (c) Sold for $21,000 on January 1, 2022. (d) Sold for $21,000 on October 1, 2022. No. Account Titles and Explanation Debit Credit (a) (b) (To record depreciation)

Answer 1

Journal entries

No	General Journal	Debit	Credit
a	Cash	45000
	Accumulated depreciation-equipment (80000-20000/5*3)	36000
	Gain on sale of equipment		1000
	Equipment		80000
b	Depreciation expense	4000
	Accumulated depreciation-equipment		4000
	(To record depreciation)
	Cash	45000
	Accumulated depreciation-equipment	40000
	Gain on sale of equipment		5000
	Equipment		80000
	(to record sale of equipment)
c	Cash	21000
	Accumulated depreciation-equipment	36000
	Loss on sale of equipment	23000
	Equipment		80000
d	Depreciation expense	9000
	Accumulated depreciation-equipment		9000
	(To record Dep)
	Cash	21000
	Accumulated depreciation-equipment	45000
	Loss on sale of equipment	14000
	Equipment		80000
	(To record sale of equipment)