On May 01, 2017, Perena Co. purchased equipment for $25,000 cash. Additional charges included freight charges $600; sales taxes $400; oil and lubricants to be used for the current period $300; and installation charges $1,000. The company decided to depreciate the equipment using the straight-line method, with an expected useful life of 10 years and salvage value $3,000. On June 30, 2021, the equipment was sold for $10,500 cash. The end of accounting period is December 31, each year.

Prepare the journal entry to record the acquisition on May 01, 2017 and the disposal of the equipment on June 30, 2021.

Answer rating: 100% (QA)

Journal Entry for Acquisition of Equipment on May 01 2017 Equipment Account 27700 Cash Account 25000 ... View the full answer