Problem:
Beka Company owns equipment that cost $50,000 when purchased on January 1, 2005. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.
Instructions
Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.
- Sold for $28,000 on January 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
- Sold for $28,000 on May 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Account / Description Debit Credit
- Sold for $11,000 on January 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
- Sold for $11,000 on October 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)