Purchase Solution

Equipment Disposal

Not what you're looking for?

Ask Custom Question

Howard Company purchased equipment in 1994 for $60,000 and estimated a $6,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2000, there was $37,800 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2001, the equipment was sold for $16,000

Prepare the appropriate journal entries to remove the equipment from the books of Howard Company on March 31, 2001.

Date Explanation Post. Ref. Debit Credit

Purchase this Solution

Solution Summary

The solution provides the journal entries to remove the equipment from the books

Solution Preview

Date Explanation Ref Debit Credit
31/3/01 Cash 16,000
31/3/01 Accumulated Depreciation ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Operations Management

This quiz tests a student's knowledge about Operations Management

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.