Question

Exercise 9-10 Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2017. 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. Prepare Pryce 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 $31,000 on January 1, 2020. Sold for $31,000 on May 1, 2020. Sold for $11,000 on January 1, 2020. Sold for $11,000 on October 1, 2020. Debit Credit No. Account Titles and Explanation (a) Cash 31000 36000 Accumulated Depreciation Equipment Gain on Disposal of Plant Assets 2000 Equipment 65000 (b) (To record depreciation)

Answer 1

Answer:

	Depreciation
	65000-5000/5	12,000	per years\
No	Accounts Title	Debit($)	Credit($)
a	Cash	31,000
	Accumulated depreciation (12000*3)	36,000
	Equipment		65,000
	Gain on sale of equipment		2,000
	(Being entry recorded for sale of equipment)
b	Depreciation expenses (12000*4/12)	4,000
	Accumulated depreciation		4,000
	Cash	31,000
	Accumulated depreciation (12000*3)+4000	40,000
	Equipment		65,000
	Gain on sale of equipment		6,000
	(Being entry recorded for sale of equipment)
c	Cash	11,000
	Accumulated depreciation (12000*3)	36,000
	Loss on sale of equipment	18,000
	Equipment		65,000
	(Being entry recorded for sale of equipment)
d	Depreciation expenses (12000*9/12)	9,000
	Accumulated depreciation		9,000
	Cash	11,000
	Accumulated depreciation (12000*3)+9000	45,000
	Loss on sale of equipment	9,000
	Equipment		65,000
	(Being entry recorded for sale of equipment)