Equipment Was Acquired at the Beginning of the Year at a Cost

question 155

Essay

Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500.(a)What was the depreciation expense for the first year?
(b)Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment.(c)Journalize the entry to record the sale.

Identify the principles of social learning theory and its explanations for behavior acquisition and regulation.

Understand Lewin's force field theory and its emphasis on internal and external motivational forces.

Acknowledge the importance of expectancies in linking behaviors to goals, and cognitive factors in the determination of behavior.

Comprehend the role of cognitive theories in explaining motivated states through rational thought processes.

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Definitions:

Consolidation Process

involves combining the financial statements of two or more companies into a single set of statements.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements that helps in adjusting and eliminating the financial information of the parent company and its subsidiaries.

Totals and Subtotals

Sums presented in financial statements or reports that represent the aggregation of financial data, with subtotals used to group related items together under a common category.

Dividends Payable

Refers to the amount of dividend that a company has declared to distribute to its shareholders but has not yet paid out.