At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year. Required: Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment.
At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year. Required: Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...
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Question
At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation , and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year.
Required:
Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment. |
Expert Solution
Step 1
Introduction:
Journals:
Recording of a business transactions in a chronological order.
First step in the preparation of final accounts is recording journals.
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