Response to the following problem:
On January 1, 20X1, Restful Hospital acquired an item of equipment for $90,000. This equipment has an estimated useful life of five years and a 20 percent salvage value. On March 1, 20X4, this equipment is sold for $44,000.
Required: Assume that Restful Hospital's fiscal year ends on December 31 and that adjustments for depreciation are made only at the end of each year.
(1) Prepare all necessary journal entries from January 1, 20X1, through March 1, 20X4.
(2) Draw up and complete a plant ledger card for this item.