Beka Company owns equipment that cost $50,000 when purchased on January 1, 2007 It has been depreciated using the straight line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years Instructions Prepare Beka Companys journal entries to record the sale of the equi...

a Cash 28000 Accumulated Depreciation x Equipment 50000 5000 X 3 ...

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2007. It has been depreciated

Question:

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2007. It has been depreciated using the straight-line method based on estimated of $5,000 and an estimated useful life of 5 years.
Instructions
Prepare Beka Company’s journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $28,000 on January 1, 2010.
(b) Sold for $28,000 on May 1, 2010.
(c) Sold for $11,000 on January 1, 2010.
(d) Sold for $11,000 on October 1, 2010.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...