Share
Explore BrainMass

Sale of Equipment and Fixed Assets Journal entries

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2005. 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.
Instructions

Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.

- Sold for $28,000 on January 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
- Sold for $28,000 on May 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Account / Description Debit Credit

- Sold for $11,000 on January 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
- Sold for $11,000 on October 1, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Solution Summary

THe solution includes journal entries on sale of equipment, entries on sale of equipment mid year, entries for sale of equipment at a loss and entries for sale of equipment at a gain in an attached Word document.

$2.19