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The Pet Salon depreciated the fixtures on a straight-line basis, with $2,000 residual value. On May 31, 2020, Pet Salon sold the fixtures for $26,000 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 26,000.00 Less: Book value of asset disposed of Cost 48,300.00 Less: Accumulated Depreciation 22,378.33 25,921.67 Gain or (Loss) 78.33 Date Description Debit Credit May 31 Depreciation Exp-Fixture 3,858.33 May 31 Accum. Depr.-Fixture 3,858.33 May 31 Cash 26,000.00 May 31 Accum. Depr.-Fixture 22,378.33 May 31 Loss on Sale -78.33 May 31 Fixture 48,300.00