Equipment acquired on january 6 2013 at a cost of 417390, Ask an Expert

Accounting

Equipment acquired on January 6, 2013, at a cost of $417,390, has an estimated useful life of 17 years and an estimated residual value of $68,805.

Required:

a. What was the annual amount of depreciation for the years 2013, 2014, and 2015 using the straight-line method of depreciation?

2013 $____________
2014 $_____________
2015 $____________

b. What was the book value of the equipment on January 1, 2016?

$____________________

c. Assuming that the equipment was sold on January 3, 2016, for $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

JOURNAL
	DATE	DESCRIPTION	POST. REF.	DEBIT
1
2
3
4

D. Assuming that the equipment had been sold on January 3, 2016, for $368,885 instead of $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL
	DATE	DESCRIPTION	POST. REF.	DEBIT
1
2
3
4

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91619376

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