Solution-Prepare the journal entry to record the sale

Prepare the journal entry to record the sale

Reference no: EM133106939

Question - Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $175,000. The residual value of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $48,000. 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 -

1. Prepare the journal entry to record the sale.

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

Reference no: EM133106939

Questions Cloud

Importance of big-data computing stems : The rising importance of big-data computing stems from advances in many different technologies.

Credit card fraud detection using machine learning : Describe an organizational need that your project proposes to solve. Describe the context and background for your project.

Introduced multiple AI applications : The readings from this introduced multiple AI applications, provided some foundational history as well as multiple concepts and terms.

Compute the net present value of Project A : The working capital needed for project B will be released at the end of six years for investment elsewhere. Compute the net present value of Project A

Prepare the journal entry to record the sale : Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $175,000. Prepare the journal entry to record the sale

How much is the accrued interest on December : How much is the accrued interest on December 31 if the rate of interest was 5% on May 9, 5.4% effective August 1, and 6% effective November 1

Should ABC go ahead with the introduction of the new product : You can assume a tax rate of 35% and ABC cost of capital of 12%. Should ABC go ahead with the introduction of the new product

How much money she will have after six years : Your client is thinking of investing $600 at the end of every six months for the next six years. How much money she will have after six years

What is the minimum price Chase would need : Chase purchased a $30,000 car three years ago using a 10 percent, 5-year car loan. What is the minimum price Chase would need

User Account

All Pages

Prepare the journal entry to record the sale

Reference no: EM133106939

Reference no: EM133106939

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT