Exercise 9-10 Sheffield Corp. owns equipment that cost $62,900 when purchased on

Question

Exercise 9-10 Sheffield Corp. owns equipment that cost $62,900 when purchased on January 1 method based on an estimated salvage value of s4,700 and an estimated useful life of S 2016. It has been depreciated using the straight-line years. Prepare Shefield Corp's journal entries to record the sale of the equipment in these four titles are automatically Indented when amount Is e.g.125. If no entry is required, select "No Entry" for the account tities and enter o for the amounts.) situations. (Credit account entered. Do not indent manually, Round answers to 0 decimal places (a) Sold for $29,920 on January 1, 2019 (D) Sold for $29,920 on May 1, 2019. (c) Sold for $11,000 on January 1, 2019 (d) Sold for $11,000 on October 1, 2019 No. Account Titles and Explanation Debit Credit (To record depreciation) (To record sale of equipment) To record sale of equipment) Question Attempts: 0 of s used

Explanation / Answer

No.

Accounts Title and Explanation

Debit

Credit

(a).

Cash

$29920

Accumulated depreciation

$34920

      Equipment

$62900

      Gain on sale of equipment

$1920

(For recording of sale of equipment)

(b).

Depreciation expense

$3880

      Accumulated depreciation

$3880

(For recording depreciation expense from January1 to May 1, 2019)

Cash

$29920

Accumulated depreciation

$38800

      Equipment

$62900

      Gain on sale of equipment

$5820

(For recording of sale of equipment)

(c).

Cash

$11000

Accumulated depreciation

$34920

Loss on sale of equipment

$16980

      Equipment

$62900

(For recording sale of equipment)

(d).

Depreciation expense

$8730

      Accumulated depreciation

$8730

(For recording depreciation expense from January 1 to October 1, 2019)

Cash

$11000

Accumulated depreciation

$43650

Loss on sale of equipment

$8250

      Equipment

$62900

(For recording sale of equipment)

Working Note;

Annual depreciation will be calculated as follow;

($62900 – $4700) / 5 = $11640

(a). Accumulated depreciation from January 1, 2016 to January 1, 2019;

($11640 * 3) = $34920

Gain on sale will be calculated as follow;

($34920 + $29920 – $62900) = $1920

(b). Accumulated depreciation from January 1, 2016 to May 1, 2019;

($11640 * 3) + ($11640 * 4 / 12) = $38800

Gain on sale will be calculated as follow;

($38800 + $29920 – $62900) = $5820

(c). Accumulated depreciation from January 1, 2016 to January 1, 2019;

($11640 * 3) = $34920

Loss on sale will be calculated as follow;

($34920 + $11000 – $62900) = $16980

(d). Accumulated depreciation from January 1, 2016 to October 1, 2019;

($11640 * 3) + ($11640 * 9 / 12) = $43650

Loss on sale will be calculated as follow;

($43650 + $11000 – $62900) = $8250

No.

Accounts Title and Explanation

Debit

Credit

(a).

Cash

$29920

Accumulated depreciation

$34920

      Equipment

$62900

      Gain on sale of equipment

$1920

(For recording of sale of equipment)

(b).

Depreciation expense

$3880

      Accumulated depreciation

$3880

(For recording depreciation expense from January1 to May 1, 2019)

Cash

$29920

Accumulated depreciation

$38800

      Equipment

$62900

      Gain on sale of equipment

$5820

(For recording of sale of equipment)

(c).

Cash

$11000

Accumulated depreciation

$34920

Loss on sale of equipment

$16980

      Equipment

$62900

(For recording sale of equipment)

(d).

Depreciation expense

$8730

      Accumulated depreciation

$8730

(For recording depreciation expense from January 1 to October 1, 2019)

Cash

$11000

Accumulated depreciation

$43650

Loss on sale of equipment

$8250

      Equipment

$62900

(For recording sale of equipment)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.