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Shown below are the T$-$accounts relating to equipment that was purchased for cash by a company on the first day of the current year.

The equipment was depreciated on a straight$-$line basis with an estimated useful life of $10$ years and a salvage value of $$256.$ Part of

the equipment was sold on the last day of the current year for cash proceeds. $($a$)$

Your answer is correct.

Prepare the journal entries to record purchase of equipment on January $1.($List all debit entries before credit entries. Credit account

titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the

account titles and enter $O$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

What was the cash paid?

Cash paid $

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List of Accounts

Attempts: unlimited

$($b$)$

Your answer is correct.

Prepare the journal entry to record depreciation recorded on December $31.($List all debit entries before credit entries. Credit account

titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the

account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Credit

Dec. $31$

Depreciation Expense

Accumulated Depreciation$-$Equipment

What was the depreciation expense?

Depreciation expense $($C$)$

Your answer is partially correct.

Prepare the journal entry to record sale of part of the equipment on December $31.($List all debit entries before credit entries. Credit

account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for

the account titles and enter $O$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31$

Cash

Accumulated Depreciation$-$Equipment

Equipment

$]$

Gain on Disposal of Plant Assets

What was the loss on disposal?

Loss on disposal

$

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List of Accounts

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