Logan Company owns equipment that cost $140,000 when purchased on January 1, 2018. It has been...

 

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Logan Company owns equipment that cost $140,000 when purchased on January 1, 2018. It has been depreciated using the straight- line method based on estimated salvage value of $14,000 and an estimated useful life of 5 year. Prepare Logan Company's journal entries to record the sale of the equipment in five independent situations. Update depreciation on assets disposed of at time of sale. ✓ Your answer is correct. (a) Sold for $65,000 on January 1, 2021 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets eTextbook and Media List of Accounts Your Answer Correct Answer Your answer is partially correct. Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense) Cash Accumulated Depreciation-Equipment (b) Sold for $65,000 on April 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Gain on Disposal of Plant Assets Equipment (To record sale of equipment) eTextbook and Media Solution List of Accounts Your Answer Correct Answer - Your answer is partially correct. Account Titles and Explanation Cash Accumulated Depreciation-Equipment Debit Loss on Disposal of Plant Assets Equipment Debit 65,000 75,600 Debit 6,300 65000 81900 6900 (c) Sold for $35,000 on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 35,000 Credit 81900 23100 140,000 Credit 600 Credit 6,300 140000 140000 Logan Company owns equipment that cost $140,000 when purchased on January 1, 2018. It has been depreciated using the straight- line method based on estimated salvage value of $14,000 and an estimated useful life of 5 year. Prepare Logan Company's journal entries to record the sale of the equipment in five independent situations. Update depreciation on assets disposed of at time of sale. ✓ Your answer is correct. (a) Sold for $65,000 on January 1, 2021 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets eTextbook and Media List of Accounts Your Answer Correct Answer Your answer is partially correct. Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense) Cash Accumulated Depreciation-Equipment (b) Sold for $65,000 on April 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Gain on Disposal of Plant Assets Equipment (To record sale of equipment) eTextbook and Media Solution List of Accounts Your Answer Correct Answer - Your answer is partially correct. Account Titles and Explanation Cash Accumulated Depreciation-Equipment Debit Loss on Disposal of Plant Assets Equipment Debit 65,000 75,600 Debit 6,300 65000 81900 6900 (c) Sold for $35,000 on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 35,000 Credit 81900 23100 140,000 Credit 600 Credit 6,300 140000 140000

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