43) Barnhart's sold a piece of restaurant equipment to another restaurant on July 1, 2013 for $1,100 cash. The equipment originally cost $12,000, had an estimated life of 20 years, and an estimated salvage value of $2,000. Barnhart's had recorded total depreciation of $9,000 through the end of 2012, using the straight-line method. Barnhart's had to update the depreciation of the asset before recording the sale. After the depreciation was updated, Barnhart's then recorded the sale transaction. Please provide the entry for the sale transaction.
44) On September 1, 2013, Algernon Company sold a truck for $15,000 cash. The truck was originally purchased for $40,000, had an estimated salvage value of $4,000 and an estimated life of 6 years. Algernon had recorded depreciation of $30,000 through the end of 2012 using the straight-line method. First, Algernon had to update the depreciation prior to sale. Then Algernon recorded the sale transaction. Please provide the journal entry to record the sale.
Learning Objective 9-4
1) Depletion expense is the portion of a natural resource's cost used up in a particular period.
2) Accumulated depletion is a contra asset account.
3) Depletion is the word we use instead of depreciation to attach to recovering the cost of natural resources.
4) Which of the following items should be depleted?
A) Intangible property
B) Land
C) Natural resources
D) Tangible property, plant, and equipment other than land