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Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2012. It has been depreciated using the straight-line method based on an estimated salvage value of $5,000 and an estimated useful life of 5 years. InstructionsPrepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations. (a) Sold for $31,000 on January 1, 2015. (b) Sold for $31,000 on May 1, 2015. (c) Sold for $11,000 on January 1, 2015. (d) Sold for $11,000 on October 1, 2015
Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2012. It has been depreciated using the straight-line method based on an estimated salvage value of $5,000 and an estimated useful life of 5 years. InstructionsPrepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations. (a) Sold for $31,000 on January 1, 2015. (b) Sold for $31,000 on May 1, 2015. (c) Sold for $11,000 on January 1, 2015. (d) Sold for $11,000 on October 1, 2015
If Pryce Company ownsequipmentthat cost $65,000 when purchased on January 1, 2012. It has been depreciated using thestraight-line methodbased on an estimatedsalvage valueof $5,000 and an estimateduseful lifeof 5 years. Prepare Pryce Company's journalentriesto record thesaleof the equipment in these four independent situations.Pryce Company'sjournal entries(a) Soldfor $31,000 on January 1, 2015Jan 1, 2015Debit Cash $31,000Debit Accumulated Depreciation- Equipment $36,000[($65,000-$5,000)/5 × 3]Credit Equipment $65,000Credit Gain on sale of Equipment $2,000($31,000+$36,000-$65,000)(To record sales ofequipment)(b) Sold for $31,000 on May 1, 2015May 1, 2015Debit Depreciation Expense $4,000Credit Accumulated Depreciation- Equipment $4,000[($65,000-$5,000)/5 × 4/12](To recorddepreciationexpense)May 1, 2015Debit Cash $31,000Debit Accumulated Depreciation- Equipment $40,000($36,000+$4,000)Credit Equipment $65,000Credit Gain on sale of Equipment $6,000($31,000+$40,000-$65,000)(To record sale ofequipment)(c) Sold for $11,000 on January 1, 2015Jan 1, 2015Debit Cash $11,000Debit Accumulated Depreciation- Equipment $36,000[($65,000-$5,000)/5 × 3]Debit Loss on sale of Equipment $18,000($65,000-$11,000-$36,000)Credit Equipment $65,000(To record sales ofequipment)(d) Sold for $11,000 on October 1, 2015Oct 1, 2015Debit Depreciation Expense $9,000Credit Accumulated Depreciation- Equipment $9,000[($65,000-$5,000)/5 × 9/12](To recorddepreciationexpense)Oct 1, 2015Debit Cash $11,000Debit Accumulated Depreciation- Equipment $45,000($36,000+$9,000)Debit Loss on sale of Equipment $9,000($65,000-$11,000-$45,000)Credit Equipment $65,000(To record sales ofequipment)Learn more here:brainly.com/question/23722861...