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Assume that on January 2, 2016, Sanoma Furniture purchased fixtures for $8,500 cash,...

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Accounting

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Assume that on January 2, 2016, Sanoma Furniture purchased fixtures for $8,500 cash, expecting the fixtures to remain in service for five years. Sanoma has depreciated the fixtures on a double-declining-balance basis, with $1,600 estimated residual value. On October 31, 2017, Sanoma sold the fixtures for $2,600 cash. Requirement 1. Record both the depreciation expense on the fixtures for 2017 and the sale of the fixtures. Apart from your journal entry, also show how to compute the gain or loss on Sanoma's disposal of these fixtures. Start by recording depreciation expense on the fixtures for 2017. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Debit Credit Oct 31

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