Sullivan Sales Purchased a Machine on January 1,2019 Which Cost

question 103

Essay

Sullivan Sales purchased a machine on January 1,2019 which cost $450,000.The machine had a residual value of $50,000 and a useful life of 10 years.Sullivan Sales can replace this machine with one that is more efficient and decides to sell the old machine for $100,000 on July 1,2021.
Required:
Prepare the appropriate journal entries to record the sale of this machine,assuming the company uses the double-declining-balance method of depreciation.The fiscal year ends on December 31.

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Definitions:

Supporting Documents

Documentation that provides evidence for financial transactions, serving as a basis for recording entries in the accounting system.

Internal Control

Procedures and policies implemented by a company to safeguard assets, ensure accurate reporting, and comply with laws and regulations.

Customer's Ledger

A ledger that contains the individual accounts of customers, showing their transactions and balances.

Accounts Receivable

Funds that clients or customers owe to a company for products or services that have been provided but not yet compensated for.