Equipment was purchased for $24,000 on January 1, 2018. The equipment's estimated useful life was five years, and its residual value was $4,000. The straight-line method of depreciation was used. Prepare the journal entry to record the sale of the equipment for $25,000 on January 3, 2019. The company has a calendar year accounting period. Omit explanation.

What will be an ideal response?




*Accumulated Depreciation: Asset was held for 1 year

Annual Depreciation: (Cost - residual value) / useful life

($24,000 - $4,000) / 5 years = $4,000



Business

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