Bennett Corporation sold a piece of equipment on June 30, 2022, for $146,000 cash. The equipment...

Transcribed Image Text:

Bennett Corporation sold a piece of equipment on June 30, 2022, for $146,000 cash. The equipment had been purchased on January 1, 2018, for $438,000. The equipment had an estimated useful life of 6 years and a $87,600 residual value. Bennett Corporation has been using the straight-line method of depreciation and has a year-end of December 31st. Required: Prepare the journal entry at the end of year five for the asset's disposal, assuming that 2022 depreciation expense has not been recorded. Note: 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 the $146,000 sale of equipment, purchased on January 1, 2018, for $438,000 with an estimated residual value of $87,600 and an estimated useful life of 6 years, on June 30, 2022. Note: Enter debits before credits. Transaction June 30, 2022 Cash General Journal Debit Credit Accumulated depreciation Equipment Gain on Disposal Bennett Corporation sold a piece of equipment on June 30, 2022, for $146,000 cash. The equipment had been purchased on January 1, 2018, for $438,000. The equipment had an estimated useful life of 6 years and a $87,600 residual value. Bennett Corporation has been using the straight-line method of depreciation and has a year-end of December 31st. Required: Prepare the journal entry at the end of year five for the asset's disposal, assuming that 2022 depreciation expense has not been recorded. Note: 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 the $146,000 sale of equipment, purchased on January 1, 2018, for $438,000 with an estimated residual value of $87,600 and an estimated useful life of 6 years, on June 30, 2022. Note: Enter debits before credits. Transaction June 30, 2022 Cash General Journal Debit Credit Accumulated depreciation Equipment Gain on Disposal

Answer rating: 100% (QA)

The journal entry to record the disposal of the equipment at the end of year five would be as follow... View the full answer