(b Stevenson Company purchased equipment for $250,000 on January1, 2010. The estimated salvage value...

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Accounting

(b Stevenson Company purchased equipment for $250,000 on January1, 2010. The estimated salvage value is $50,000, and the estimateduseful life is 5 years. The straight-line method is used fordepreciation. On July 1, 2013 Stevenson sold the equipment for$100,000. The journal entry to record the sale of the equipmentwill include. (5 points)
A.
A debit to cash of $100,000, a credit to equipment of$250,000
B.
A credit to accumulated depreciation of $140,000
C.
A debit to cash of 250,000, a credit to equipment of$100,000
D.
A debit to equipment of 250,000, a credit to cashof $100,000
E.
None of the above

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Ans is A A debit to cash of 100000 a credit to equipment of 250000 Working Jan12010 Cost 250000 Salvage value 50000 Useful life 5 years Sale on July12013 See Answer

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In: Accounting(b Stevenson Company purchased equipment for $250,000 on January1, 2010. The estimated salvage value is...(b Stevenson Company purchased equipment for $250,000 on January1, 2010. The estimated salvage value is $50,000, and the estimateduseful life is 5 years. The straight-line method is used fordepreciation. On July 1, 2013 Stevenson sold the equipment for$100,000. The journal entry to record the sale of the equipmentwill include. (5 points)A.A debit to cash of $100,000, a credit to equipment of$250,000B.A credit to accumulated depreciation of $140,000C.A debit to cash of 250,000, a credit to equipment of$100,000D.A debit to equipment of 250,000, a credit to cashof $100,000E.None of the above