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Equipment Disposal

Howard Company purchased equipment in 1994 for $60,000 and estimated a $6,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2000, there was $37,800 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2001, the equipment was sold for $16,000

Prepare the appropriate journal entries to remove the equipment from the books of Howard Company on March 31, 2001.

Date Explanation Post. Ref. Debit Credit

Solution Preview

Date Explanation Ref Debit Credit
31/3/01 Cash 16,000
31/3/01 Accumulated Depreciation ...

Solution Summary

The solution provides the journal entries to remove the equipment from the books

$2.19