Question

Sale of Equipment Assume the equipment was sold on December 31, 2019 and had accumulated depreciation of $87,040. It was sold for $15,000. Prepare the journal entry to record the sale. Debit Credit Date Accounts Dec 31, 2019 AMORTIZATION Roller Blades Inc. acquired for cash a patent for $80,000, 30 year life, and a remaining useful life of 16 years. Record the journal entry for the purchase of the patent on January 1, 2018. Accounts Debit Credit Date Jan. 1. 2018 Record the adjusting journal entry for amortization at December 31, 2018. Date Accounts Debit Credit Dec. 31, 2018
can someone help me with this and explain how they did it?

Answer 1

Sale of Equipment:
Date	Accounts	Debit	Credit
Dec. 31, 2019	Accumulated Depreciation	$87,040
	Cash	$15,000
	Equipment		$100,000
	Profit on sale of Equipment ($87,040 + $15,000 - $100,000)		$2,040
	(To record the sale of equipment for cash and with profit)
Amortization
Date	Accounts	Debit	Credit
Jan. 1, 2018	Patent	$80,000
	Cash		$80,000
	(To record the purchase of patent by cash)
Dec. 31, 2018	Amortization Expense ($80,000/16 years)	$5,000
	Accumulated Amortization - Patent		$5,000
	(To record the amortization expense for 2018)