On January 1, 2011, Muddy Acres, Inc. purchased a $44,000 mulching machine with a useful life of 5 years and a $4,000 salvage value. The company uses straight-line depreciation. On December 31, 2014, after 4 full years of use, Muddy Acres sold the machine for $6,000.
Part A: Show the effect of the sale in 2014 on the accounting equation. Write in both the correct dollar amounts and the account titles affected. Use a + for increases and parentheses () for decreases. Assume that depreciation expense for 2014 has already been recorded.

Part B: For each item below,WRITE IN THE AMOUNT as of or for the period ended December 31,2014,in the column of the one financial statement where the amount is found.

Question

On January 1, 2011, Muddy Acres, Inc. purchased a $44,000 mulching machine with a useful life of 5 years and a $4,000 salvage value. The company uses straight-line depreciation. On December 31, 2014, after 4 full years of use, Muddy Acres sold the machine for $6,000.
Part A: Show the effect of the sale in 2014 on the accounting equation. Write in both the correct dollar amounts and the account titles affected. Use a + for increases and parentheses () for decreases. Assume that depreciation expense for 2014 has already been recorded.
 
Part B: For each item below,WRITE IN THE AMOUNT as of or for the period ended December 31,2014,in the column of the one financial statement where the amount is found.

Quizplus · Accepted Answer

The Answer of On January 1, 2011, Muddy Acres, Inc. purchased a $44,000 mulching machine with a useful life of 5 years and a $4,000 salvage value. The company uses straight-line depreciation. On December 31, 2014, after 4 full years of use, Muddy Acres sold the machine for $6,000.
Part A: Show the effect of the sale in 2014 on the accounting equation. Write in both the correct dollar amounts and the account titles affected. Use a + for increases and parentheses () for decreases. Assume that depreciation expense for 2014 has already been recorded.
 
Part B: For each item below,WRITE IN THE AMOUNT as of or for the period ended December 31,2014,in the column of the one financial statement where the amount is found.