Plessis Company owns equipment that cost $65,000 when purchased on January 2, 2024. It has been depreciated
Question:
Plessis Company owns equipment that cost $65,000 when purchased on January 2, 2024. It has been depreciated using the straight-line method based on estimated residual value of $5,000 and an estimated useful life of five years.
Instructions
Prepare Plessis Company’s journal entries to record the sale of the equipment in these four independent situations.
a. Sold for $31,000 on January 2, 2027
b. Sold for $31,000 on May 1, 2027
c. Sold for $11,000 on January 2, 2027
d. Sold for $11,000 on October 1, 2027
Step by Step Answer:
a b c d 2027 Jan 2 Cash Accumul...View the full answer
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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