Koch Company owns equipment that cost ₤110,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated residual value of ₤10,000 and an estimated useful life of 5 years.
Instructions
Prepare Koch Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for ₤56,000 on January 1, 2014.
(b) Sold for ₤56,000 on April 1, 2014.
(c) Sold for ₤22,000 on January 1, 2014.
(d) Sold for ₤22,000 on October 1, 2014.

Question

Quizplus · Accepted Answer

The Answer of Koch Company owns equipment that cost ₤110,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated residual value of ₤10,000 and an estimated useful life of 5 years.
Instructions
Prepare Koch Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for ₤56,000 on January 1, 2014.
(b) Sold for ₤56,000 on April 1, 2014.
(c) Sold for ₤22,000 on January 1, 2014.
(d) Sold for ₤22,000 on October 1, 2014.

Koch Company Owns Equipment That Cost ₤110,000 When Purchased on January