Question

Oriole Company owns equiment that cost $70.000 when purchased on January 1, 2019. It has been deprecated using the straight-ire method based on an estimated salvage value of $10.000 and an estimated useful le of years to record the sale of the equipment in these four independent situations. (Credit account title are wutomatically indented when amount is entered. Do not indent m ually. If no entry is the amount.) (a) Sold for $30,000 on January 1, 2022. (D) Sold for $30,000 on May 1, 2022. (c) Sold for $14,000 on January 1, 2022. (d) Sold for $14,000 on October 1, 2022. No. Account Titles and Explanation Debit Credit (loc al) (To rear sa cr quipment To Coc depredation To record sale of equipment)

Exercise 9-11 Oriole Company owns equipment that cost $70,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Prepare Oriole 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 0 for the amounts.) (a) Sold for $36,000 on January 1, 2022. (b) Sold for $36,000 on May 1, 2022. (c) Sold for $14,000 on January 1, 2022. (d) Sold for $14,000 on October 1, 2022.

Answer 1

a) Journal entry

date	account and explanation	Debit	Credit
Jan 1	Cash	36000
	Accumulated depreciation-equipment (70000-10000/5)*3	36000
	Gain on sale of equipment		2000
	Equipment		70000

b) Journal entry

date	account and explanation	Debit	Credit
May 1	Depreciation expense (70000-10000/5)*4/12	4000
	Accumulated depreciation-equipment		4000
May 1	Cash	36000
	Accumulated depreciation-equipment	40000
	Gain on sale of equipment		6000
	Equipment		70000

c) Journal entry

date	account and explanation	Debit	Credit
Jan 1	Cash	14000
	Accumulated depreciation-equipment (70000-10000/5)*3	36000
	Loss on sale of equipment	20000
	Equipment		70000

d) Journal entry

date	account and explanation	Debit	Credit
Oct 1	Depreciation expense (70000-10000/5)*9/12	9000
	Accumulated depreciation-equipment		9000
Oct 1	Cash	14000
	Accumulated depreciation-equipment	45000
	Loss on sale of equipment	11000
	Equipment		70000