JRB Preschool purchased a van used in the business three years ago for $36,500. The accumulated depreciation account related to the equipment asset account had a balance of $18,000. The equipment had an estimated salvage (residual)value of $6,500 and had an estimated life of five years. A full year's depreciation was taken the first year. JRB uses the straight-line depreciation method. All depreciation is usually recorded at year end. The company sold the equipment in exchange for a promissory note on July 1 of the fourth year for $12,000. Record the appropriate entries necessary.

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The Answer of JRB Preschool purchased a van used in the business three years ago for $36,500. The accumulated depreciation account related to the equipment asset account had a balance of $18,000. The equipment had an estimated salvage (residual)value of $6,500 and had an estimated life of five years. A full year's depreciation was taken the first year. JRB uses the straight-line depreciation method. All depreciation is usually recorded at year end. The company sold the equipment in exchange for a promissory note on July 1 of the fourth year for $12,000. Record the appropriate entries necessary.

JRB Preschool Purchased a Van Used in the Business Three