Question

Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2011. 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 Pryce Company’s journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $31,000 on January 1, 2014.
(b) Sold for $31,000 on May 1, 2014.
(c) Sold for $11,000 on January 1, 2014.
(d) Sold for $11,000 on October 1, 2014.



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  • CreatedJanuary 30, 2014
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