As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc., sold shelving units (recorded as Equipment) that were 10 years old for $800 cash. The shelves originally cost$6,400 and had been depreciated on a straight-line basis over an estimated useful life of 10 yearswith an estimated residual value of $400. Assuming that depreciation has been recorded to the dateof sale, show the effect of the disposal on the accounting equation. Prepare the journal entry torecord the sale of the shelving units.

As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc., sold shelving units (recorded as Equipment) that were 10 years old for $800 cash. The shelves originally cost$6,400 and had been depreciated on a straight-line basis over an estimated useful life of 10 yearswith an estimated residual value of $400. Assuming that depreciation has been recorded to the dateof sale, show the effect of the disposal on the accounting equation. Prepare the journal entry torecord the sale of the shelving units.

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Description: As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc., sold shelving units (recorded as Equipment) that were 10 years old for $800 cash. The shelves originally cost$6,400 and had been depreciated on a straight-line

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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