1. Business
2. Accounting
3. Financial Accounting & Bookkeeping
4. Journal Entries
5. 293702

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PROBLEM # 2 LTB4-2:

The Overly Complex Company uses the composite method of depreciation on the following assets:

Asset A Asset B Asset C Asset D Asset E

Original Cost $56,700 $46,900 $50,400 $26,600 $32,900
Life (years) 5 6 7 8 9
Salvage Value $7,700 $6,700 $5,000 $2,100 $3,500

Asset B was sold for $22,000 cash after being used for 4 years.

Instructions:

Prepare the journal entry to record depreciation expense for the year.

Prepare the journal entry to record the sale of Asset B.