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Sale of Equipment and Fixed Assets Journal entries

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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.)

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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.

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