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The 2023 adjusted trial balance for Oscar Corporation (the Company) follows. Debits Credits Cash 100,000 Accounts receivable 50,000 Allowance for doubtful accounts 5,000 Inventory 10,000 Equipment 500,000 Accumulated depreciation 100,000 Land 10,000 Accounts payable 25,000 Note payable bank 500,000 Common stock 50,000 Revenues Retained earnings Gain on sale of equipment 5,000,000 20,000 Bad debt expense Expenses 10,000 5,020,000 5,700,000 5,700,000 Additional Information . The Company records depreciation on a 5-year SL basis with no salvage value. All of the Company's equipment was placed in service on 1.1.23. • On December 31, 2023, the Company disposed of a piece of equipment on which it had recorded one year of depreciation. The equipment was sold for its original purchase price, for cash. Required What journal entries would have been prepared (and have been recorded by management) for the Company's 2023 depreciation expense and the sale of the equipment on December 31, 2023.

The 2023 adjusted trial balance for Oscar Corporation (the Company) follows. Debits Credits Cash 100,000 Accounts receivable 50,000 Allowance for doubtful accounts 5,000 Inventory 10,000 Equipment 500,000 Accumulated depreciation 100,000 Land 10,000 Accounts payable 25,000 Note payable bank 500,000 Common stock 50,000 Revenues Retained earnings Gain on sale of equipment 5,000,000 20,000 Bad debt expense Expenses 10,000 5,020,000 5,700,000 5,700,000 Additional Information . The Company records depreciation on a 5-year SL basis with no salvage value. All of the Company's equipment was placed in service on 1.1.23. • On December 31, 2023, the Company disposed of a piece of equipment on which it had recorded one year of depreciation. The equipment was sold for its original purchase price, for cash. Required What journal entries would have been prepared (and have been recorded by management) for the Company's 2023 depreciation expense and the sale of the equipment on December 31, 2023.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The 2023 adjusted trial balance for Oscar Corporation (the Company) follows. Debits Credits Cash 100,000 Accounts receivable 50,000 Allowance for doubtful accounts 5,000 Inventory 10,000 Equipment 500,000 Accumulated depreciation 100,000 Land 10,000 Accounts payable 25,000 Note payable bank 500,000 Common stock 50,000 Revenues Retained earnings Gain on sale of equipment 5,000,000 20,000 Bad debt expense Expenses 10,000 5,020,000 5,700,000 5,700,000 Additional Information . The Company records depreciation on a 5-year SL basis with no salvage value. All of the Company's equipment was placed in service on 1.1.23. • On December 31, 2023, the Company disposed of a piece of equipment on which it had recorded one year of depreciation. The equipment was sold for its original purchase price, for cash. Required What journal entries would have been prepared (and have been recorded by management) for the Company's 2023 depreciation expense and the sale of the equipment on December 31, 2023.
Transcribed Image Text:The 2023 adjusted trial balance for Oscar Corporation (the Company) follows. Debits Credits Cash 100,000 Accounts receivable 50,000 Allowance for doubtful accounts 5,000 Inventory 10,000 Equipment 500,000 Accumulated depreciation 100,000 Land 10,000 Accounts payable 25,000 Note payable bank 500,000 Common stock 50,000 Revenues Retained earnings Gain on sale of equipment 5,000,000 20,000 Bad debt expense Expenses 10,000 5,020,000 5,700,000 5,700,000 Additional Information . The Company records depreciation on a 5-year SL basis with no salvage value. All of the Company's equipment was placed in service on 1.1.23. • On December 31, 2023, the Company disposed of a piece of equipment on which it had recorded one year of depreciation. The equipment was sold for its original purchase price, for cash. Required What journal entries would have been prepared (and have been recorded by management) for the Company's 2023 depreciation expense and the sale of the equipment on December 31, 2023.
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