\"Exercise 9-10 Pryce Company owns equipment that cost $67,300 when purchased on
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Question
"Exercise 9-10 Pryce Company owns equipment that cost $67,300 when purchased on January 1, 2014. I has been depreciated using the of 5 years straight-line method besed on an estimated salvage value of $4,400 and an estimated useful life Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent stuations Round answers to O decimal places, a-g.125. Ir no entry is required, select "No Entry for the account titles and enter o for the amounts) (a) Sold for $32,740 on January 1, 2017. (b) Sold for $32,740 on May 1, 2017, (c) Sold for $10,400 on January 1, 2017. (d) Sold for $10,400 on October 1, 2017 (Credit account tities are automatically Indented when amount is entered. Do not indent manually No. Account Titles and Explanation Credit To reoord depreciation) (To record sale of equipment)
Explanation / Answer
No. Accounting title and explaination Debit Credit a. Cash 32740 Accumulated Depritiation 37740 Equipment 67300 Gain on sale of Equipment 3180 b. Depritiation expense (12580 * 4 / 12) 4193 Accumulated Depritiation 4193 (To record Depritiation) Cash 32740 Accumulated Depritiation 41933 Equipment 67300 Gain on sale of Equipment 7373 (To record sale of Equiment) c Cash 10400 Accumulated Depritiation 37740 Loss on sale of Equipment 19160 Equipment 67300 d Depritiation expense 9435 Accumulated depritiation (12580 * 9 / 12) 9435 (To record depritiation) Cash 10400 Accumulated depritiation 47175 Loss on sale of Equipment 9725 Equipment 67300
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