TCMSTU012 ole welcome to- a PortaGuard-L chapter 10 T-Cengage-A cer gage.. ssign

Question

TCMSTU012 ole welcome to- a PortaGuard-L chapter 10 T-Cengage-A cer gage.. ssignmentMain.do?invokers assignmen C Show Me How Calculator ies for sale of fixed asset Chart of Accounts First Question Journal nstructions on January 8 at a cost of $168,000 has an estimated usetul lite of 18 years, has an estimated residual value of $1 5,000, and is depreciated by the straight-ine methed A What B. Assuming that the equipment was soid on Apni t of the tith year for $125,000, jourmatce the entries to record () depreciation for the thre was the book e of the equipment at December 31 the end of the fourth year? months untl the sale date and (2) the sale of the equipment Premous

Explanation / Answer

Question Part A A Cost of equipment $168,000 B Useful Life in year 18 C Residual Value $15,000 D=(A-C)/B Annual depreciation $        8,500 E=D*4 Depreciation for 4 years $     34,000 F=A-E Book value at Dec 31 the end of 4th year $134,000 Question Part B G=(D/12)*3 Depreciation for three months $        2,125 JOURNAL ENTRY ACCOUNT TITLE DEBIT CREDIT .(1) Depreciation expense $        2,125 Accumulated depreciation $     2,125 (To Record depreciation expenses) .(2) Cash $125,000 Accumulated depreciation $     36,125 (34000+2125) Loss on Sale $6,875 (134000-2125-125000) Equipment $168,000 (To record the sale of equipment)

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