What was the depreciation for the first year?
Equipment was acquired at the beginning of the year at a cost of $465,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 15 years and an estimated residual value of $45,000.
Required:
A.What was the depreciation for the first year?
B.Assuming the equipment was sold at the end of the eighth year for $235,000, determine the gain or loss on the sale of the equipment.
C.Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
ASSETS LIABILITIES
110Cash 210Accounts Payable
111Petty Cash 211Salaries Payable
213Sales Tax Payable
112Accounts Receivable 214Interest Payable
114Interest Receivable 215Notes Payable
115Notes Receivable
116Merchandise Inventory
117Supplies REVENUE
119Prepaid Insurance 410Sales
120Land 610Interest Revenue
123Delivery Truck 620Gain on Sale of Delivery Truck
124Accumulated Depreciation-Delivery Truck 621Gain on Sale of Equipment
125Equipment
126Accumulated Depreciation-Equipment
130Mineral Rights
131Accumulated Depletion
132Goodwill
133Patents
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EQUITY
310Owner, Capital
311Owner, Drawing
312Income Summary
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EXPENSES
510Cost of Merchandise Sold
520Salaries Expense
521Advertising Expense
522Depreciation Expense-Delivery Truck
523Delivery Expense
524Repairs and Maintenance Expense
529Selling Expenses
531Rent Expense
532Depreciation Expense-Equipment
533Depletion Expense
534Amortization Expense-Patents
535Insurance Expense
536Supplies Expense
539Miscellaneous Expense
710Interest Expense
720Loss on Sale of Delivery Truck
721Loss on Sale of Equipment
Answers
Status NEW
Posted 09 May 2017 12:05 AM
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