Question

rent Students Westche VHL Central Activities Com O 5 - Chapter 7 x My Badboard Content- @ https://newconnect.mheducation.com/flow/connect.html re select then and drag to the Favorites Bar folder. Or import from another browser. Import favorites z #5 - Chapter 7 Help Save & Exit Submit Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later for $25,400. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $7,000 residual value. 1. What was the gain or loss on the sale? Loss on sale 2. Record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit < Prev 9 of 10 !!! Next > re to search o e ema # w

Answer 1

la. credit to hos on sale = $800 Record the sale Debit Cash alc $25400 Loss on sale of $ 800 - Tractor all (Teactor sold after two yeals on lois) $26900 working notes 1 1.) Depreciation - Cost - Redidual value Useful life - $390000-17000 = $6400 2.) Tractor Alc. • To bal old $39000, By depreciation By bal keld $39000 To bal old $32600 By depreciation By Bal eld $6400 $32600 $ 39000 $6400 $26200 $32600 $32600 To bal old $26200 | By Cash By Loss on Sale $26200 $ 25400 $800 126200