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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 $25,300 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 25,300.00 Less: Book value of asset disposed of Cost 46,000.00 Less: Accumulated Depreciation 9,908.33 36,091.67 Gain or (Loss) -10,791.67 Date Description Debit Credit May 31 Depreciation Exp-Fixture 1,708.33 May 31 Accum. Depr.-Fixture 1,708.33 May 31 Cash 25,300.00 May 31 Accum. Depr.-Fixture 9,908.33 May 31 Loss on Sale 10,791.67 May 31 Fixture 46,000.00