Assume that on January 2,

20X1,

a

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franchise purchased fixtures for

$14,900

cash, expecting the fixtures to remain in service

five

years. The restaurant has depreciated the fixtures on a double-diminishing-balance basis with

$600

estimated residual value. On June 30,

20X2,

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sold the fixtures for

$3,400

cash.

 

Read the requirements

1.	Record the sale of the fixtures.
2.	Management is thinking of switching to the straight-line method of depreciation. Do you agree? Why or why not?

 

 

Question content area bottom

 

Part 1

 

Requirement 1. Record the sale of the fixtures.

 

Record the depreciation expense on the fixtures for

20X2

and then the sale of the fixtures. Record the depreciation expense on the fixtures for the first six months of

20X2.

(Record debits first, then credits. Explanations are not required. Round your answers to the nearest whole dollar.)

 

Date	Account Titles	Debit	Credit
June 30

Answer rating: 100% (QA)

ANSWER To record the sale of the fixtures and the depreciation expense for the first six months of 2... View the full answer