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The Pet Salon depreciated the fixtures on a straight-line basis, with $4,000 residual value. On May 31, 2020, Pet Salon sold the fixtures for $25,700 cash.
Record both depreciation expense for 2020 and sale of the fixtures on May 31, 2020.
Straight-line Depreciation method:
Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss)
Date Description Debit Credit May 31 May 31 May 31 May 31 May 31 May 31 May 31
Market value of assets received 25,700.00 Less: Book value of asset disposed of Cost 48,300.00 Less: Accumulated Depreciation 10,705.83 37,594.17 Gain or (Loss) -11,894.17 Date Description Debit Credit May 31 Depreciation Exp-Fixture 1,845.83 May 31 Accum. Depr.-Fixture 1,845.83 May 31 Cash 25,700.00 May 31 Accum. Depr.-Fixture 10,705.83 May 31 Loss on Sale 11,894.17 May 31 Fixture 48,300.00