FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 on December 31: | |
| (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.* |
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