Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2012. It has been depreciated

Question:

Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2012. 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.

Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g.125.)

(a) Sold for $31,000 on January 1, 2015.

(b) Sold for $31,000 on May 1, 2015.

(d) Sold for $11,000 on October 1, 2015.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...