On April 30, 2024, Wilson Company sold a used piece of manufacturing equipment for $6,500. The equipment

Fantastic news! We've Found the answer you've been seeking!

Question:

On April 30, 2024, Wilson Company sold a used piece of manufacturing equipment for $6,500. The equipment had been purchased on January 1, 2021, for $50,000. The equipment was estimated to have a useful life of four years, with a residual value of $2,000. The equipment had been depreciated using the straight-line method. Record the journal entry associated with the sale of the equipment on April 30, 2024.

Q2. On January 1, 2024, Bartow Company purchased a delivery truck for $45,000. Estimated useful life is a five-year period, after which it will be sold for $5,000. Record depreciation on December 31, 2024 using straight line method.

Q3. On July 1, 2024, Rojo received a payment of $500 from Cameroon for the amount that had been previously written off on March 5, 2024. Prepare the required journal entries on July 1. (You are required to post two journal entries)

Q4. On November 1, 2023, Rojo accepted a $6,000, six-month, 5% note from a customer. Rojo’s year end is December 31. a. How much interest would Rojo earn in 2023? b. How much interest would Rojo earn in 2024?