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ULUI Formatting as Table Styles G1 Comma Style R D E F G H 1 J K L M O 1 Problem 1 There are 3 problems on this sheet. 2 3 1. A company purchases an asset on January 1 which costs 15,000. It has a 4 year ife and $3,000 salvage value. The company uses straight line depreciation 4 N p The company is going to sell the asset at the end of year 2 for $8,000. Joumalize the entry to record the sale 7 Debt Credit 8 8.000 9 Acou. Depre 3.000 10 Loss on sale of asset 1,000 11 Asset 15,000 12 Year 1 Year 2 Year 3 Book value Depr. Exp. Accu Dep Book value and 15,000 3,000 3.000 12,000 12,000 3.000 8,000 9,000 9,000 3.000 9,000 6,000 6,000 3,000 12.000 3,000 15 16 17 19 2. Assume that the company sells the asset for $10,000. Joumalize the entry to record the sale 20 Debt Credit Cash 10,000 22 Accu. Depre 3,000 23 Loss on sale of asset 2,000 24 Asset 15,000 25 26 27 3. Same as 82 above, but the company cannot sell the asset because newer assets have made too obsolete. The 28 company has to trash the asset. 49 10 11 2 34 -5 B -7 9 0 1 2 Computing Gain & Losses Problem 1 Problem 2 Problem 3 Problem 4 + Ready