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.
Required:
(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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