Computer equipment (office equipment) purchased 6½ years ago for $170,000, with an estimated life of eight years and a residual value of $10,000, is now sold for $60,000 cash.
(Appropriate entries for depreciation had been made for the first six years of use.) Journalize the following entries:
(a)Record the depreciation for the one-half year prior to the sale, using the straight-line method.
(b)Record the sale of the equipment.
(c)Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.

Question

Computer equipment  (office equipment) purchased 6½ years ago for $170,000, with an estimated life of eight years and a residual value of $10,000, is now sold for $60,000 cash. 
(Appropriate entries for depreciation had been made for the first six years of use.) Journalize the following entries:
(a)Record the depreciation for the one-half year prior to the sale, using the straight-line method.
(b)Record the sale of the equipment.
(c)Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.

Quizplus · Accepted Answer

The Answer of Computer equipment  (office equipment) purchased 6½ years ago for $170,000, with an estimated life of eight years and a residual value of $10,000, is now sold for $60,000 cash. 
(Appropriate entries for depreciation had been made for the first six years of use.) Journalize the following entries:
(a)Record the depreciation for the one-half year prior to the sale, using the straight-line method.
(b)Record the sale of the equipment.
(c)Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.

Computer Equipment (Office Equipment) Purchased 6½ Years Ago for $170,000