Use Sheet attached to Scantron On a sheet attached to the scantron, prepare a ge

Question

Use Sheet attached to Scantron On a sheet attached to the scantron, prepare a general journal for the following information. On November 1, 2006, Rob's Auto Repair purchased diagnostic equipment for $18,000. The equipment had an estimated residual value of $3,000 and a five-year life and was sold on May 1, 2008. Assuming that the company depreciates the asset on a straight-line basis and reports on a calender year basis, journalize the following independent transactions in the journal provided. (Omit explanations.) The entry to update depreciation to May 1, 2008 The entry to record the sale for $15,000 The entry to record the sale instead for $11,000 The entry to record the sale instead for $13,500

Explanation / Answer

Journal Entries:

Date Account Name Debit Credit 2008 May 1 Depreciation (3000x4/12) 1000        Equipment 1000 May 1 Cash 15000         Profit onn sale 1500         Equipment [18000 - 4500] 13500 May 1 Cash 11000 Loss on Sale 1500          Equipment 13500 May 1 Cash 13500          Equipment 13500

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