Bennett Corporation sold a piece of equipment on June 30, 2016, for $50,000 cash. The equipment had been purchased on January 1, 2012, for $150,000. The equipment had an estimated useful life of 6 years and a $30,000 residual value. Bennett Corp. has been using the straight-line method of depreciation and has a year-end of December 31^st.
Required:
Prepare any necessary journal entries on June 30, 2016, assuming that 2016 depreciation expense has not been recorded.

Question

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The Answer of Bennett Corporation sold a piece of equipment on June 30, 2016, for $50,000 cash. The equipment had been purchased on January 1, 2012, for $150,000. The equipment had an estimated useful life of 6 years and a $30,000 residual value. Bennett Corp. has been using the straight-line method of depreciation and has a year-end of December 31^st. Required: Prepare any necessary journal entries on June 30, 2016, assuming that 2016 depreciation expense has not been recorded.

Bennett Corporation Sold a Piece of Equipment on June 30