NT RESOURCES Your answer is partially correct. Try again. Pryce Company owns equ
ID: 2590922 • Letter: N
Question
NT RESOURCES Your answer is partially correct. Try again. Pryce Company owns equipment that cost $69,000 when purchased on January 1, 2014. It has been depreciated using the straight-line method based on an estimated salvage value of $5,500 and an estimated useful life of 5 years. Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g.125. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $33,100 on January 1, 2017 (b) Sold for $33,100 on May 1, 2017. (c) Sold for $10,100 on January 1, 2017. (d) Sold for $10,100 on October 1, 2017 Debit Credit (a 33100 38100 2200 (b Accumulated Depreciat 4232 (To record depreciation) 33100Explanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. (a) Cash Dr. 33,100 Accumulated Depreciation Dr. 38,100 To Equipment 69,000 To Gain on Disposal of Plant 2,200 (Record the sale of equipment) (b) Depreciation Expenses Dr. 4,233 $12,700 X 4/12 To Accumulated Depreciation) 4,233 $12,700 X 4/12 (To record depreciation) Cash Dr. 33,100 Accumulated Depreciation Dr. 42,333 To Equipment 69,000 To Gain on Disposal of Plant 6,433 (Record the sale of equipment) © Cash Dr. 10,100 Accumulated Depreciation Dr. 38,100 Loss on Disposal of Plant Dr. 20,800 To Equipment 69,000 (Record the sale of equipment) (d) Depreciation Expenses Dr. 9,525 $12,700 X 9/12 To Accumulated Depreciation) 9,525 $12,700 X 4/12 (To record depreciation) Cash Dr. 10,100 Accumulated Depreciation Dr. 47,625 Loss on Disposal of Plant Dr. 11,275 To Equipment 69,000 (Record the sale of equipment)
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