Question

Exercise 9-10 January 1, 2012. It has been depreciated using the straight-line methad based on estimated salvage value of $3,500 and an estmated useful life af 5 years Pryce Company owns equipment that cast $58,050 when purchased- Epere yceam ent rimal places, e.d.125these four independert stastions. (7I no entry is required, select "No entry for the account titles and enter 0 for the amounts. Credit account titles are audomatically indented when amount is entered. (a) Sold for $33,730 on January 1, 2015 n May 1, 2015 ei d (d) Sold fo 15 $10,500 an October 2015 No. Account TRles and Explanation Deb Cred (a) Csh ulatod Deoietion Accumulated Depreciatior (bi (To record depredation) (Ta second sale of aquipment) (c) (d) (To record depreciation) (To record sele of equipment)

Hello,

Exercise 9-10

Pryce Company owns equipment that cost $58,050 when purchased on January 1, 2012. It has been depreciated using the straight-line method based on estimated salvage value of $3,500 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g.125.)

(a)Sold for $33,730 on January 1, 2015.

(b)Sold for $33,730 on May 1, 2015.

(c)Sold for $10,500 on January 1, 2015.

(d)Sold for $10,500 on October 1, 2015.

Thank you,

Answer 1

In the books of Pryce Company:

Transaction	Date	Account Titles	Debit	Credit
			$	$
a.	January 1, 2015	Cash	33,730
		Accumulated Depreciation: Equipment	32,730
		Equipment		58,050
		Gain on Disposal of Plant assets		8,410
		To record sale of equipment
b.	May 1, 2015	Depreciation Expense	3,637
		Accumulated Depreciation: Equipment		3,637
		To record depreciation expense on equipment
b.	May 1, 2015	Cash	33,730
		Accumulated Depreciation:Equipment	36,367
		Equipment		58,050
		Gain on Disposal of Plant Assets		12,047
		To record sale of equipment
c.	January 1, 2015	Cash	10,500
		Accumulated Depreciation: Equipment	32,730
		Loss on Disposal of Plant Assets	14,820
		Equipment		58,050
		To record sale of equipment
d.	October 1, 2015	Depreciation Expense	8,182
		Accumulated Depreciation: Equipment		8,182
		To record depreciation expense on equipment
d.	October 1, 2015	Cash	10,500
		Accumulated Depreciation: Equipment	40,912
		Loss on Disposal of Plant Assets	6,638
		Equipment		58,050
		To record sale of equipment