On June 17, 2020, Popcorn Company received $50,000 from selling equipment that cost $120,000, had a...

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On June 17, 2020, Popcorn Company received $50,000 from selling equipment that cost $120,000, had a useful life of 5 years, a residual value of $20,000, and under straight-line depreciation, accumulated depreciation as of December 31, 2019 of $46,400. REQUIRED: 1) Prepare the journal entry to record depreciation up to the date of disposal of the equipment. (use nearest whole month method) 2) Prepare the journal entry to record the disposal of the equipment. On June 17, 2020, Popcorn Company received $50,000 from selling equipment that cost $120,000, had a useful life of 5 years, a residual value of $20,000, and under straight-line depreciation, accumulated depreciation as of December 31, 2019 of $46,400. REQUIRED: 1) Prepare the journal entry to record depreciation up to the date of disposal of the equipment. (use nearest whole month method) 2) Prepare the journal entry to record the disposal of the equipment.

Answer rating: 100% (QA)

1 To calculate the depreciation expense up to the date of disposal we need to determine the deprecia... View the full answer