Question

Hello! thank you so much for helping me, I really appreciate it. Below are the questions but I will also write them out:

Statement: Crane Limited equipment on September 30,2018, for $41,120 cash. The equipment originally cost $153,380 when purchased on Jan 1, 2016. It has an estimated residual value of $4,240 and a useful life of five years. Depreciation was last recorded on Dec 31, 2017, the company's year end. Record debit side accounts first followed by credit side accounts.

Question #1: Prepare the journal entry to update depreciation using the straight-line method to September 30,2018

Question #2: Prepare the journal entry to record the sale of the equipment.

ctice Assignment Gradebook ORION Downloadable eTextbook inment Brief Exercise 9-10 ab Crane United sells equipment on September 30, 2018. for 41.120 cash. The equipment originally cost $153,380 when purchased on January 1, 20 on December 31, 2017, the company's year and Record debit de accounts first followed by credit side accounts. Prepare the journal entry to update depreciation using the strai Entry for the account titles and enter for the amounts.) E eptember 30, 2018. (Credit account titles are automatically Account Titles and Explanation D e l for the amounts.) ty to record the sale of the equipment. (Credit accou indented when the amount is enrered. Account Titles and Explanation Debit Credit

Answer 1

Part a)

The journal entry to update depreciation using the straight line method to September 31, 2018 is given as below:

Account Titles and Explanation	Debit	Credit
Depreciation Expense [(153,380-4,240)/5*9/12]	$22,371
Accumulated Depreciation-Equipment		$22,371

_____

Part b)

The journal entry to record the sale of equipment is provided as follows:

Account Titles and Explanation	Debit	Credit
Cash	$41,120
Accumulated Depreciation-Equipment [(153,380-4,240)/5*2+22,371]	$82,027
Loss on Sale of Equipment (153,380-41,120-82,027)	$30,233
Equipment		$153,380