Reference no: EM132760711

Hillman Janitorial Services, Inc. purchased a new floor steam cleaner on July 31, 2017. Hillman paid $7,000 cash. The company expects the new floor steam cleaner to be useful for 5 years after which time the company expects to sell it for $500. The company has a December 31 year end and would like to use straight-line depreciation.

Required:

Problem a.) Record the journal entry for the purchase of the new floor steam cleaner.

Problem b.) Record the required year-end adjustment

Problem c.) On March 31, 2018, Hillman sold the floor steam cleaner. Record depreciation up to the date of the sale.

Problem d.) Assume that Hillman sold the floor steam cleaner for:

i. $6,600 cash, record the journal entry for the sale

ii. $3,300 cash, record the journal entry for the sale