The following transactions were carried out for an unnamed company during Year $6$:

$$ January $1$Purchased a building for $$84,000$ cash. It has a $$4,000$ residual value, $20-$year expected life, and double$-$declining balance amortization will be used.

$$ May $1$Purchased equipment for $$25,000$ cash. It has a $$3,000$ residual value, $10-$year expected life, and straight$-$line amortization will be used, using days as the basis.

$$ December $31$Recorded amortization on the building and equipment.

Additional transactions were carried out during Year $7$:

$$ June $30$Sold the equipment for $$21,000$ cash. Remember to record amortization to date for Year $7$ before selling the equipment.

$$ December $31$Recorded amortization on the building.

Required

Prepare journal entries for the above transactions. Please leave one empty row between each journal entry.

Answer rating: 100% (QA)

Journal entries are a way to record transactions for an accounting period in a doubleentry bookkeeping system Every journal entry has equal debit and credit amounts to maintain this balance Lets go th... View the full answer