Entries for sale of fixed asset InstructionsChart of AccountsFirst QuestionJournal Instructions Equipment acquired on January 8 at a cost of $136,150 has an estimated useful life of 15 years, has an estimated residual value of $8,050, and is depreciated by the straight-line method.Required: a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assuming that the equipment was sold on April 1 of the fifth year for $93,175, journalize the entries to record (1) depreciation for the three months until the sale date and (2) the sale of the equipment. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answer to the nearest whole dollar. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS110Cash111Petty Cash112Accounts Receivable114Interest Receivable115Notes Receivable116Merchandise Inventory117Supplies119Prepaid Insurance120Land123Delivery Truck124Accumulated Depreciation-Delivery Truck125Equipment126Accumulated Depreciation-Equipment130Mineral Rights131Accumulated Depletion132Goodwill133Patents LIABILITIES210Accounts Payable211Salaries Payable213Sales Tax Payable214Interest Payable215Notes Payable EQUITY310Owner's Capital311Owner's Drawing REVENUE410Sales610Interest Revenue620Gain on Sale of Delivery Truck621Gain on Sale of Equipment EXPENSES510Cost of Merchandise Sold520Salaries Expense521Advertising Expense522Depreciation Expense-Delivery Truck523Delivery Expense524Repairs and Maintenance Expense529Selling Expenses531Rent Expense532Depreciation Expense-Equipment533Depletion Expense534Amortization Expense-Patents535Insurance Expense536Supplies Expense539Miscellaneous Expense710Interest Expense720Loss on Sale of Delivery Truck721Loss on Sale of Equipment First Question a. What was the book value of the equipment at December 31 the end of the fourth year? Journal b. Assuming that the equipment was sold on April 1 of the fifth year for $93,175, journalize the entries to record the following (Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answer to the nearest whole dollar.):1. Depreciation for the three months until the sale datePAGE 1 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 2. The sale of the equipmentPAGE 2 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4

Name: Entries for sale of fixed asset InstructionsChart of AccountsFirst Que
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Description: Entries for sale of fixed asset InstructionsChart of AccountsFirst QuestionJournal Instructions Equipment acquired on January 8 at a cost of $136,150 has an estimated useful life of 15 years, has an estimated residual value of $8,050, and is depre

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Entries for sale of fixed asset InstructionsChart of AccountsFirst QuestionJournal   Instructions  Equipment acquired on January 8 at a cost of $136,150 has an estimated useful life of 15 years, has an estimated residual value of $8,050, and is depreciated by the straight-line method.Required: a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assuming that the equipment was sold on April 1 of the fifth year for $93,175, journalize the entries to record (1) depreciation for the three months until the sale date and (2) the sale of the equipment. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answer to the nearest whole dollar.  Chart of Accounts  CHART OF ACCOUNTS General Ledger ASSETS110Cash111Petty Cash112Accounts Receivable114Interest Receivable115Notes Receivable116Merchandise Inventory117Supplies119Prepaid Insurance120Land123Delivery Truck124Accumulated Depreciation-Delivery Truck125Equipment126Accumulated Depreciation-Equipment130Mineral Rights131Accumulated Depletion132Goodwill133Patents LIABILITIES210Accounts Payable211Salaries Payable213Sales Tax Payable214Interest Payable215Notes Payable EQUITY310Owner's Capital311Owner's Drawing REVENUE410Sales610Interest Revenue620Gain on Sale of Delivery Truck621Gain on Sale of Equipment EXPENSES510Cost of Merchandise Sold520Salaries Expense521Advertising Expense522Depreciation Expense-Delivery Truck523Delivery Expense524Repairs and Maintenance Expense529Selling Expenses531Rent Expense532Depreciation Expense-Equipment533Depletion Expense534Amortization Expense-Patents535Insurance Expense536Supplies Expense539Miscellaneous Expense710Interest Expense720Loss on Sale of Delivery Truck721Loss on Sale of Equipment  First Question  a. What was the book value of the equipment at December 31 the end of the fourth year?    Journal  b. Assuming that the equipment was sold on April 1 of the fifth year for $93,175, journalize the entries to record the following (Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answer to the nearest whole dollar.):1. Depreciation for the three months until the sale datePAGE 1 JOURNALACCOUNTING EQUATION  DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1        2           2. The sale of the equipmentPAGE 2 JOURNALACCOUNTING EQUATION  DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1        2        3        4

Accepted Answer

· Straight line Method
Depreciation per annum= (Cost of equipment - residual value) /estimated…

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