Prepare Journal entries for the following transactions (show any dal culation be
ID: 2373129 • Letter: P
Question
Prepare Journal entries for the following transactions (show any dal culation below)Explanations are not equired. Rond entries to the nearestdollar,if necessary .<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
2012 Jan 1 purchased a building for $84000 cash ,$400 residual value,20-year expected life. Double %u2013declining balance depreciation.
May 1 purchased equipment for $2500 cash, $3000 residual value, 10-year expected life, straight- line depreciation.
DEC 31 recorded depreciation on the building
Dec 31 recorded depreciation on the equipment.
2013 June 30 SOLD THE EQUIPMENT FOR $ 21000 cash.(record depreciation to date for 2013 before selling equipment)
Dec 31 recorded depreciation on the building.
Explanation / Answer
jan 1
building debit 84000
cash credit 84000
May 1
equipment debit 25000
cash credit 25000
DEC 31
Depriciation expense debit 8400
Accumalated depriciation building credit 8400
Depriciation expense debit 1467
Accumalated depriciation building credit 1467
Jun 30
Depriciation expense debit 1100
accumulated depriciation-equipment credit 1100
cash debit 21000
accumulated depriciation-equipment debit 2567
loss on sale on equipment debit 1433
equipment credit 25000
DEC 31
depriciation expense debit 7560
accumulated depriciation-building credit 7560