Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years, and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000.
(a) Record the journal entry for the depreciation on this machinery for Year 4.
(b) Record the journal entry for the sale of the machinery.

Question

Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years, and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000.​
(a) Record the journal entry for the depreciation on this machinery for Year 4.
(b) Record the journal entry for the sale of the machinery.

Quizplus · Accepted Answer

The Answer of Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years, and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000.​
(a) Record the journal entry for the depreciation on this machinery for Year 4.
(b) Record the journal entry for the sale of the machinery.

Williams Company Acquired Machinery on July 1, Year 1, at a Cost