On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing...

 

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On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date. On Jan 2, A&B Co buys a $30,000 piece of equipment paying $10,000 down and signing 4 year note for the remaining balance. On Jan 2, A&B Co paid $500 freight cost and $2500 installation cost to get the equipment ready to be used. The useful life of the equipment is 8 years. The equipment has an estimated residual value of $2,000. A&B Co uses straight line depreciation. Required 1. Prepare the journal entries needed to record the equipment cost as of Jan 2. 2. Calculate the annual depreciation. 3. Prepare journal entry as of Dec 31, to record depreciation 4. A&B Co. sold a piece of equipment on Dec 31, at the end of 5 years for $14000 cash. Prepare journal entry to record the sale of equipment. Assume depreciation has been recorded through the sale date.

Answer rating: 100% (QA)

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