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The Pet Salon depreciated the fixtures on a straight-line basis, with $5,000 residual value. On May 31, 2020, Pet Salon sold the fixtures for $25,100 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 25,100.00 Less: Book value of asset disposed of Cost 48,900.00 Less: Accumulated Depreciation 17,681.94 31,218.06 Gain or (Loss) -6,118.06 Date Description Debit Credit May 31 Depreciation Exp-Fixture 3,048.61 May 31 Accum. Depr.-Fixture 3,048.61 May 31 Cash 25,100.00 May 31 Accum. Depr.-Fixture 17,681.94 May 31 Loss on Sale 6,118.06 May 31 Fixture 48,900.00