Question

On January 2, 2009, So Co Vending purchased five vending machines to place in a high school. Each vending machine cost $3,100 and had an estimated six-year useful life and $400salvage value. So Co uses the straight-line depreciation method. On April 1, 2012, the company decided to replace the vending machines and sold all of them to a single buyer.
Required:
(a) Prepare the journal entry to record the depreciation expense on the vending machines for the first three months of 2012.
(b) Determine the book value of the vending machines following the posting of the journal entry prepared in part (a).
(c) Prepare the journal entry to record the sale of the vending machines for $8,000.
(d) Prepare the journal entry to record the sale of the vending machines for $9,300.


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  • CreatedMarch 27, 2015
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