A company purchased and installed Equipment on January 1 at a total cost of $117,900.Straight-line...
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Accounting
A company purchased and installed Equipment on January 1 at a total cost of $117,900.
Straight-line depreciation was calculated based on the assumption of a eight-year life and $5,500 salvage value. The Equipment was disposed on January 1 of year six. The company uses the calendar year.
1. Prepare the general journal entry to update depreciation to January 1 of Year 6. (Hint: Consider how many years have passed and therefore depreciated.)
2. Prepare the general journal entry to record the sale of the machine for $35.000 cash.
Prepare a table for the journal entries and show your work for partial credit.
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