Homework Help is Here – Start Your Trial Now!
Business
Accounting
Instructions Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $49,785. a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles 4 DATE Dec. 31 Cash DESCRIPTION Accumulated Depreciation-Equipment Gain on Sale of Equipment Equipment X JOURNAL First Questions a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. $ b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. $217,020 gain POST. REF. DEBIT CREDIT ACCOUNTING EQUATION ASSETS PAGE 1 LIABILITIES X EQUITY X Chart of Accounts 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventor 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Deprecia Delivery Truck 125 Equipment 126 Accumulated Deprecia Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable

Instructions Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $49,785. a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles 4 DATE Dec. 31 Cash DESCRIPTION Accumulated Depreciation-Equipment Gain on Sale of Equipment Equipment X JOURNAL First Questions a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. $ b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. $217,020 gain POST. REF. DEBIT CREDIT ACCOUNTING EQUATION ASSETS PAGE 1 LIABILITIES X EQUITY X Chart of Accounts 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventor 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Deprecia Delivery Truck 125 Equipment 126 Accumulated Deprecia Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 1CP
See similar textbooks
icon
Related questions
Topic Video
Question
Instructions Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $49,785. a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 4 O DATE I Dec. 31 Cash DESCRIPTION Accumulated Depreciation-Equipment Gain on Sale of Equipment Equipment JOURNAL X O First Questions a. What was the depreciation for the first year? Round your intermediate calculations to 4. decimal places. Round the depreciation for the year to the nearest whole dollar. $ b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. $217,020 gain POST. REF. DEBIT All work saved. CREDIT ACCOUNTING EQUATION ASSETS PAGE 1 LIABILITIES X EQUITY X Chart of Accounts 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation Delivery Truck 125 Equipment 126 Accumulated Depreciation Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable Email I
Transcribed Image Text:Instructions Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $49,785. a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 c. Journalize the entry on December 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 4 O DATE I Dec. 31 Cash DESCRIPTION Accumulated Depreciation-Equipment Gain on Sale of Equipment Equipment JOURNAL X O First Questions a. What was the depreciation for the first year? Round your intermediate calculations to 4. decimal places. Round the depreciation for the year to the nearest whole dollar. $ b. Assuming the equipment was sold at the end of the second year for $557,317, determine the gain or loss on the sale of the equipment. $217,020 gain POST. REF. DEBIT All work saved. CREDIT ACCOUNTING EQUATION ASSETS PAGE 1 LIABILITIES X EQUITY X Chart of Accounts 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation Delivery Truck 125 Equipment 126 Accumulated Depreciation Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable Email I
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS