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Question 1 - Anchor Klanker Company sold equipment on June 30, 2005 for $70,000. The equipment had cost $100,000 and had $50,000 of accumulated depreciation as of January 1, 2005. Depreciation for the first 6 months of 2005 was $5,000.
Required - Prepare the journal entry to record the sale of the equipment.
Question 2 - Rum Dum and Company originally purchased a dump truck for $66,000. The truck had a 10-year useful life, and the accumulated depreciation was $30,000 when they sold the truck for $25,000.
Required - Prepare the journal entry to record the sale of the truck.
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