Question

On January 2, 2017​,

FamilyFamily

Clothing Consignments purchased showroom fixtures for 10,000

​cash, expecting the fixtures to remain in service for five years.

Family has depreciated the fixtures on a​ double-declining-balance basis, with zero residual value. On

September 30,

2018

FamilyFamily

sold the fixtures for

$ 5 comma 500$5,500

cash. Record both depreciation expense for

20182018

and sale of the fixtures on

September 30September 30​,

20182018.

Now, record the sale of the fixtures on

September 30September 30​,

20182018.

Date			Accounts and Explanation	Debit	Credit
Sep. 30

Answer 1

Date	Accounts and Explanation	Debit	Credit
Sep-30	Depreciation Expense	$ 1,800.00
	Accumulated Depreciation		$ 1,800.00

Depreciation for 2017:

=10,000 x 2/5 = 4,000

Depreciation for 2018 (through Sept. 30)

(10,000 - 4,000) x 2/5 x 9/12

=1800

Accumulated Depreciation = 4,000 + 1,800 = 5,800

Date	Accounts and Explanation	Debit	Credit
Sep-30	Cash	$ 5,500.00
	Accumulated Depreciation	$ 5,800.00
	Fixtures		$ 10,000.00
	Gain on Sale of assets		$    1,300.00