Depreciation and Multiple Debit/credit Entries

Topics: Depreciation, 2008, 1982 Pages: 2 (309 words) Published: December 15, 2012
Beka Company owns equipment that cost $50,000 when purchased on January 1, 2008. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years. Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.

Incorrect.

Sold for $28,000 on January 1, 2011. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit
CashAccum. deprec.-EquipmentEquipmentGain on disposalDepreciation expenseLoss on disposal Accum. deprec.-EquipmentCashEquipmentGain on disposalDepreciation expenseLoss on disposal EquipmentCashAccum. deprec.-EquipmentGain on disposalDepreciation expenseLoss on disposal Gain on disposalCashAccum. deprec.-EquipmentEquipmentDepreciation expenseLoss on disposal

Incorrect.

Sold for $28,000 on May 1, 2011. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit
CashEquipmentAccum. deprec.-EquipmentLoss on disposalGain on disposalDepreciation expense Accum. deprec.-EquipmentCashEquipmentGain on disposalDepreciation expenseLoss on disposal (To update depreciation)

EquipmentLoss on disposalGain on disposalDepreciation expenseAccum. deprec.-EquipmentCash CashAccum. deprec.-EquipmentEquipmentGain on disposalDepreciation expenseLoss on disposal Gain on disposalDepreciation expenseEquipmentAccum. deprec.-EquipmentCashLoss on disposal EquipmentDepreciation expenseAccum. deprec.-EquipmentLoss on disposalCashGain on disposal

Incorrect.

Sold for $11,000 on January 1, 2011. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit
Loss on disposalAccum....
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