Question: On June 30 2009 Newsom Company sold equipment for 7 250

On June 30, 2009, Newsom Company sold equipment for $7,250 that had been acquired for $14,500 on January 1, 2007. Newsom originally estimated that the computer would have a five-year useful life and a $500 salvage value. Newsom uses straight-line depreciation. The company’s fiscal year ends on December 31 and records depreciation expense at the end of each fiscal year.
(a) Determine the book value of the computer on December 31, 2008.
(b) Prepare all entries needed on June 30, 2009, to properly account for the disposal of the computer.

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  • CreatedMarch 27, 2015
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