On January 2, 2021, Sonoma - Maine Furniture purchased display shelving for $8,700 cash, expecting the shelvi to remain in service for five years. Sonoma - Maine depreciated the shelving on a double-declining-balance basis with $1,600 estimated residual value. On August 31, 2022, the company sold the shelving for $2,500 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Aug 31 $ Date Journal Entry Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures $ Debit Accounts Aug 31 Accumulated Depreciation-Fixtures 1,392 Show how to compute the gain or loss on the disposal of the shelving. (Use a minus sign or parentheses for a lo Book value Sales proceeds 2,500 3,828 Now record the sale of the shelving on August 31, 2022. Journal Entry Debit $ I 4,872 Credit 1,392 Gain (Loss) on sale (1,328) Credit
On January 2, 2021, Sonoma - Maine Furniture purchased display shelving for $8,700 cash, expecting the shelvi to remain in service for five years. Sonoma - Maine depreciated the shelving on a double-declining-balance basis with $1,600 estimated residual value. On August 31, 2022, the company sold the shelving for $2,500 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Aug 31 $ Date Journal Entry Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures $ Debit Accounts Aug 31 Accumulated Depreciation-Fixtures 1,392 Show how to compute the gain or loss on the disposal of the shelving. (Use a minus sign or parentheses for a lo Book value Sales proceeds 2,500 3,828 Now record the sale of the shelving on August 31, 2022. Journal Entry Debit $ I 4,872 Credit 1,392 Gain (Loss) on sale (1,328) Credit
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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