Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2016. It ha been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.

Instructions

Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations.

1. Sold for $31,000 on January 1, 2019.
2. Sold for $31,000 on May 1, 2019.
3. Sold for $11,000 on January 1, 2019.
4. Sold for $11,000 on October 1, 2019.

Solution