FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:### Instructions
Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.)
#### Required:
Journalize the following entries:
a. **Record the depreciation for the one-half year prior to the sale, using the straight-line method.**
b. **Record the sale of the equipment.**
c. **Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.**
*Refer to the Chart of Accounts for exact wording of account titles.*
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This section involves the analysis and recording of transactions related to the depreciation and sale of a long-term asset, specifically office computer equipment. By following the outlined steps, you will gain practical experience in handling depreciation and sale entries, important aspects of asset management in accounting.
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