Beka Company owns equipment that cost $50,000 when purchased on January 1, 2007. 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 $20,000 on January 1, 2010.
Sold for $28,000 on May 1, 2010.
Sold for $11,000 on January 1, 2010.
Sold for $11,000 on October 1, 2010.