Problem:
Pryce Company owns equipment that cost $62,400 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of $7,000 and an estimated useful life of 5 years. Prepare Pryce Companies journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
(a) Sold for $34,240 on January 1, 2014.
(b) Sold for $34,240 on May 1, 2014.
(c) Sold for $10,160 on January 1, 2014.
(d) Sold for $10,160 on October 1, 2014.
Note: Explain all steps comprehensively.