Chapter 3
Long-Term Assets
119
c) Continuing from part b), the business sold the equipment on December 31, 2019 for
$9,000 cash. The sale happened after the journal entry to record the year’s depreciation.
Prepare the journal entry to record the sale of the equipment.
Date
Account Title and Explanation
Debit
Credit
AP-6B (
3
4
)
On January 1, 2014, South Company purchased a machine for $40,000. The residual value was
estimated to be $5,000. The machine will be depreciated over five years using the straight-line
method. The company’s year-end is December 31.
Required
a) Prepare a depreciation schedule for the machine’s useful life using the following table.
Year
Cost of Long-Term
Asset
Depreciation
Expense
Accumulated
Depreciation To
Date
Net Book
Value
