Company A purchased equipment in 2026 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2027, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2028, the equipment was sold for $21,000.

Prepare the appropriate journal entries to remove the equipment from the books of Company A on March 31, 2028.


(b) Company B sold equipment for $11,000. The equipment originally cost $25,000 in 2025 and $6,000 was spent on a major overhaul in 2028 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.

Prepare the appropriate journal entry to record the disposition of the equipment.

(c) Company C sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment.

Prepare the appropriate journal entries to record the dispositions of the equipment.

Answer rating: 100% (QA)

a Journal Entries for Company A On March 31 2028 1 To remove the equipment from the books Accumulate... View the full answer