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 on January 1, 2021, at a cost of $12,000

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 on January 1, 2021, at a cost of $12,000. The equipment was originally
estimated to have a salvage value of $1,000 and an estimated life of 10 years. Depreciation has been
recorded through to December 31, 2024, using the straight-line method. On January 1, 2025, the
estimated salvage value was revised to $1,200 and the useful life was revised to a total of 8 years.
Required:
Prepare the journal entries required to record the Depreciation expense for 2025.
Assignment 3
Pinetreee Company purchased equipment in 2021 for $40,000 and estimated a $4,000 salvage value
at the end of the equipment's 10-year useful life. On December 31, 2027 there was $25,200 in the
Accumulated Depreciation account after recording Depreciation for the year using the straight-line
method. On March 1, 2028 the equipment was sold for $10,500 cash.
Required:
Prepare the journal entries required to record the sale of the equipment by Johnson Company on
March 1, 2028.
Assignment 4
Lansdowne Company exchanged an old equipment on Dec 31 (cost $40,000 less $25,000
accumulated Depreciation) plus $2,500 cash for a new equipment. The old
equipment had a market value of $13,000. Prepare the entry to record the exchange
of assets by Lansdowne Company.
Required:
Prepare the journal entries required to record the sale of the equipment by Johnson Company on
March 1, 2021.