90.2K

Verified Solution

Link Copied!

Howarth Manufacturing Company purchased equipment on June $30,2020,$ at a cost of $$125,000.$ The residual value of the equipment

was estimated to be $$8,000$ at the end of a five$-$year life. The equipment was sold on March $31,2024,$ for $$34,000.$ Howarth uses the

straight$-$line depreciation method for all of its plant and equipment. Partial$-$year depreciation is calculated based on the number of

months the asset is in service.

Required:

Prepare the journal entry to record the sale.

Assuming that Howarth had instead used the double$-$declining$-$balance method, prepare the journal entry to record the sale.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Prepare the journal entry to record the sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Howarth Manufacturing Company purchased equipment on June $30,2020,$ at a cost of $$125,000.$ The residual value of the equipment

was estimated to be $$8,000$ at the end of a five$-$year life. The equipment was sold on March $31,2024,$ for $$34,000.$ Howarth uses the

straight$-$line depreciation method for all of its plant and equipment. Partial$-$year depreciation is calculated based on the number of

months the asset is in service.

Required:

Prepare the journal entry to record the sale.

Assuming that Howarth had instead used the double$-$declining$-$balance method, prepare the journal entry to record the sale.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Assuming that Howarth had instead used the double$-$declining$-$balance method, prepare the journal entry to record the sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculation. Round your final answers to the nearest whole dollar amount.

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer