Question

Book Show Me How Calculator Print item Entries for Sale of Foxed Asset Equipment acquired on January at a cost of $101,560, has an estimated useful life of 12 years, has an estimated resichal vakie of $9.400, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? Book value is the initial cost of the feed asset minus the accumulated depreciation. Leaming Objective 3. b. Assuming that the equipment was sold on April 1 of the fifth year for 63.205. 1. Journaline the entry to record depreciation for the three months until the sale date. Round to the rest whole dollar required. of use in the year Che is being Wa Previous Next > 400 V12/2013

Answer 1

		Opening	Depreciation Expense	Accum Depreciation	Ending Balance
Beg	Year 1				$            101,560
End	Year 1	$         101,560	$              7,680	$              7,680	$              93,880
End	Year 2	$           93,880	$              7,680	$            15,360	$              86,200
End	Year 3	$           86,200	$              7,680	$            23,040	$              78,520
End	Year 4	$           78,520	$              7,680	$            30,720	$              70,840
End	Year 5	$           70,840	$              7,680	$            38,400	$              63,160
End	Year 6	$           63,160	$              7,680	$            46,080	$              55,480
End	Year 7	$           55,480	$              7,680	$            53,760	$              47,800
End	Year 8	$           47,800	$              7,680	$            61,440	$              40,120
End	Year 9	$           40,120	$              7,680	$            69,120	$              32,440
End	Year 10	$           32,440	$              7,680	$            76,800	$              24,760
End	Year 11	$           24,760	$              7,680	$            84,480	$              17,080
End	Year 12	$           17,080	$              7,680	$            92,160	$                 9,400

a.

Book value at the end of 4th year is $ 70,840

b.
1. Depreciation = 7,680 / 12 X 3 = 1,920

Depreciation Expense Equipment $ 1,920
Accumulated Depreciation Equipment $ 1,920

2.

Cash Debit $ 63,295
Accumulated Depreciation Equipment Debit $ 32,640
Loss on sale of Equipment Debit    $ 5,625
Equipment Credit $ 101,560