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Question - Pryce Company owns equipment that cost $60,000 when purchased on January 1, 2014. It has been depreciated using the straight-line method based on estimated salvage value of $3,000 and an estimated useful life of 5 years.
Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $29,200 on January 1, 2017.
(b) Sold for $29,200 on May 1, 2017.
(c) Sold for $10,000 on January 1, 2017.
(d) Sold for $10,000 on October 1, 2017.
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The total assets and total liabilities of Coca-Cola and PepsiCo are shown below.
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