Answer Happy

Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $105,000. The residual value of the equipment was estimated to be $9,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $27,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit 1 1 Cash 27,000 105,000 Equipment Depreciation expense Loss on sale of equipment 72,000 6,000 Required 1 Required 2 >