Exercise 11-12 (Algo) Depreciation methods; disposal; partial periods [LO11-2] Howarth Manufacturing Company purchased equipment on June...

 

 

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Exercise 11-12 (Algo) Depreciation methods; disposal; partial periods [LO11-2] Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $145,000. The residual value of the equipment was estimated to be $14,500 at the end of a five-year life. The equipment was sold on March 31, 2021, for $46,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record sale of equipment. Note: Enter debits before credits. Event 1 General Journal Cash Accumulated depreciation-equipment Loss on sale of equipment Equipment ▼ Debit 46,000 Credit > Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. (If entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Note: Enter debits before credits. Event 1 General Journal Cash Accumulated depreciation-equipment Gain on sale of equipment Equipment ▼ Debit Credit > Exercise 11-12 (Algo) Depreciation methods; disposal; partial periods [LO11-2] Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $145,000. The residual value of the equipment was estimated to be $14,500 at the end of a five-year life. The equipment was sold on March 31, 2021, for $46,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record sale of equipment. Note: Enter debits before credits. Event 1 General Journal Cash Accumulated depreciation-equipment Loss on sale of equipment Equipment ▼ Debit 46,000 Credit > Exercise 11-12 (Algo) Depreciation methods; disposal; partial periods [LO11-2] Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $145,000. The residual value of the equipment was estimated to be $14,500 at the end of a five-year life. The equipment was sold on March 31, 2021, for $46,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record sale of equipment. Note: Enter debits before credits. Event 1 General Journal Cash Accumulated depreciation-equipment Loss on sale of equipment Equipment ▼ Debit 46,000 Credit > Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. (If entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Note: Enter debits before credits. Event 1 General Journal Cash Accumulated depreciation-equipment Gain on sale of equipment Equipment ▼ Debit Credit > Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. (If entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Note: Enter debits before credits. Event 1 General Journal Cash Accumulated depreciation-equipment Gain on sale of equipment Equipment ▼ Debit Credit >

Answer rating: 100% (QA)

1 Straightline depreciation method The cost of the equipment is 145000 and the residual value is 145... View the full answer