Lumen OHM Assessment

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Fixtures costing $46,000 were purchased by Pet Salon on January 2, 2018. They were expecting the fixtures to remain in service for 5 years.
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 $25,600 cash.

Record both depreciation expense for 2020 and sale of the fixtures on May 31, 2020.

Straight-line Depreciation method:

Statement
Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or (Loss)

Journal
Date	Description	Debit	Credit
May 31
May 31
May 31

May 31
May 31
May 31
May 31

Statement
Market value of assets received		25,600
Less: Book value of asset disposed of
Cost	46,000
Less: Accumulated Depreciation	20,300	25,700
Gain or (Loss)		-100

Journal
Date	Description	Debit	Credit
May 31	Depreciation Exp-Fixture	3,500
May 31	Accum. Depr.-Fixture		3,500

May 31	Cash	25,600
May 31	Accum. Depr.-Fixture	20,300
May 31	Loss on Sale	100
May 31	Fixture		46,000