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Equpment acqured on January 6 ata cost of:374,000, has an estimated usefulhe o/20years and an estmated reskual value 01$225,000.A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?B. What was the book value of the equipment on January 1 of Year 4? C. Assuming that the equipment was sold on January 3 of Year 4 for $600,000, joumalize the entry to revord the sale. Refer to the Chart of Accounts for exact wording of account titles.D. Assuming that the equipment had been sold on January 3 of Year 4 for 3325,000 instead of 5300, 000, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

Century 21 Accounting Multicolumn Journal

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

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Equpment acqured on January 6 ata cost of: 374,000, has an estimated usefulhe o/20years and an estmated reskual
value 01$225,000.A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of
depreciation?B. What was the book value of the equipment on January 1 of Year 4?C. Assuming that the equipment
was sold on January 3 of Year 4 for $600,000, joumalize the entry to revord the sale. Refer to the Chart of Accounts for
exact wording of account titles. D. Assuming that the equipment had been sold on January 3 of Year 4 for 3325,000
instead of 5300, 000, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account
titles.

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