Question

Oriole Company owns equipment that cost $63,200 when purchased on January 1, 2016. It has been depreciated using the straight-line method based on an estimated salvage value of $5,000 and an estimated useful life of 5 years. Accumulated deprecation was last adjusted on December 31, 2018. 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. Round answers to O decimal places, e.g.125. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) Sold for $29,920 on January 1, 2019. Sold for $29,920 on May 1, 2019. Sold for $10,800 on January 1, 2019. Sold for $10,800 on October 1, 2019. No. Account Titles and Explanation Debit Credit (a) cash 29920 Accumulated Depreciation-Equipment 34920 Equipment 63200 1640 Accumulated Depreciation-Equipment (To record depreciation)

Answer 1

Journal entries

No	General Journal	Debit	Credit
a	Cash	29920
	Accumulated depreciation-equipment	34920
	Gain on sale of equipment		1640
	Equipment		63200
b	Depreciation expense (63200-5000/5)*4/12	3880
	Accumulated depreciation-equipment		3880
	(To record depreciation)
	Cash	29920
	Accumulated depreciation-equipment	38800
	Gain on sale of equipment		5520
	Equipment		63200
	(to record sale of equipment)
c	Cash	10800
	Accumulated depreciation-equipment	34920
	Loss on sale of equipment	17480
	Equipment		63200
d	Depreciation expense (63200-5000/5)*9/12	8730
	Accumulated depreciation-equipment		8730
	(To record Dep)
	Cash	10800
	Accumulated depreciation-equipment	43650
	Loss on sale of equipment	8750
	Equipment		63200
	(To record sale of equipment)