Entries for sale of fixed asset Equipment acquired on January 8, 2013, at a cost of $ 140,000, has an estimated useful life of 16 years, has an estimated residual value of $8,000, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31, 2016, the end of the year? b. Assuming that the equipment was sold on July 1, 2017, for $96,700, journalize the entries to record (1) depreciation for the six months until the sale date, and (2) the sale of the equipment.

BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter 10, Problem 10.17EX
Textbook Problem

Entries for sale of fixed asset

Equipment acquired on January 8, 2013, at a cost of $ 140,000, has an estimated useful life of 16 years, has an estimated residual value of $8,000, and is depreciated by the straight-line method.

a. What was the book value of the equipment at December 31, 2016, the end of the year?

b. Assuming that the equipment was sold on July 1, 2017, for $96,700, journalize the entries to record (1) depreciation for the six months until the sale date, and (2) the sale of the equipment.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 10 Solutions

Accounting (Text Only)
Ch. 10 - Straight-line depreciation A building acquired at...Ch. 10 - Straight-line depreciation Equipment acquired at...Ch. 10 - Units-of-activity depreciation A truck acquired at...Ch. 10 - Units-of-activity depreciation A tractor acquired...Ch. 10 - Double declining-balance depreciation A building...Ch. 10 - Double-declining-balance depreciation Equipment...Ch. 10 - Revision of depreciation Equipment with a cost of...Ch. 10 - Revision of depreciation A truck with a cost of...Ch. 10 - Capital and revenue expenditures On February 14,...Ch. 10 - Capital and revenue expenditures On August 7,...Ch. 10 - Sale of equipment Equipment was acquired at the...Ch. 10 - Sale of equipment Equipment was acquired at the...Ch. 10 - Depletion Glacier Mining Co. acquired mineral...Ch. 10 - Depletion Caldwell Mining Co. acquired mineral...Ch. 10 - Impaired goodwill and amortization of patent On...Ch. 10 - Impaired goodwill and amortization of patent On...Ch. 10 - Fixed asset turnover ratio Financial statement...Ch. 10 - Fixed asset turnover ratio a. Determine the fixed...Ch. 10 - Costs of acquiring fixed assets Melinda Stoffers...Ch. 10 - Determining cost of land Bridger Ski Co. has...Ch. 10 - Determining cost of land Northwest Delivery...Ch. 10 - Capital and revenue expenditures Warner Freight...Ch. 10 - Capital and revenue expenditures Jackie Fox owns...Ch. 10 - Capital and revenue expenditures Quality Move...Ch. 10 - Nature of depreciation Tri-City Ironworks Co....Ch. 10 - Straight-line depreciation rates Convert each of...Ch. 10 - Straight-line depreciation A refrigerator used by...Ch. 10 - Depreciation by units-of- output method A...Ch. 10 - Depreciation by units-of-output method Prior to...Ch. 10 - Depreciation by two methods A John Deere tractor...Ch. 10 - Depreciation by two methods A storage tank...Ch. 10 - Partial-year depreciation Sandblasting equipment...Ch. 10 - Revision of depreciation A building with a cost of...Ch. 10 - Capital expenditure and depreciation; parital-year...Ch. 10 - Entries for sale of fixed asset Equipment acquired...Ch. 10 - Disposal affixed asset Equipment acquired on...Ch. 10 - Depletion entries Big Sky Mining Co. acquired...Ch. 10 - Amortization entries Smith Company acquired patent...Ch. 10 - Book value of fixed assets Apple Inc. designs,...Ch. 10 - Balance sheet presentation List the errors you...Ch. 10 - Fixed asset turnover ratio The following table...Ch. 10 - Fixed asset turnover ratio Verizon Communications...Ch. 10 - Asset traded for similar asset A printing press...Ch. 10 - Asset traded for similar asset Assume the same...Ch. 10 - Entries for trade of fixed asset On July 1, Twin...Ch. 10 - Entries for trade of fixed asset On October 1,...Ch. 10 - Allocating payments and receipts to fixed asset...Ch. 10 - Comparing three depreciation methods Montes Coffee...Ch. 10 - Depreciation by three methods; partial years...Ch. 10 - Depreciation by two methods; sale of fixed asset...Ch. 10 - Transactions for fixed assets, including sale The...Ch. 10 - Amortization and depletion entries Data related to...Ch. 10 - Allocating payments and receipts to fixed asset...Ch. 10 - Comparing three depreciation methods Waylander...Ch. 10 - Depreciation by three methods; partial years...Ch. 10 - Depreciation by two methods; sale of fixed asset...Ch. 10 - Transactions for fixed assets, including sale The...Ch. 10 - Amortization and depletion entries Data related to...Ch. 10 - Ethics in Action Dave Elliott, CPA, is an...Ch. 10 - Financial versus tax depreciation The following is...Ch. 10 - Effect of depreciation on net income Tuttle...Ch. 10 - Fixed asset turnover: three industries The...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Edmund Enterprises recently made a large investment to upgrade its technology. Although these improvements wont...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)