On January 1 of the current year, Herkimer & Co. purchases, for cash, a group of seven laptops for its new hires. The laptops are purchased for $2,300 each with a residual value of $500 each. Herkimer expects the laptops to be used for 3 years. At the end of the current year, Herkimer & Co. sells two laptops for $1,800 each. 

Required: 

Prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops in Year 1.

Answer rating: 100% (QA)

Answer Journal Entries Date Particulars Debit Credit Jan01 Lapto... View the full answer