Hall Company acquired equipment for $350,000 on September 1st 2007. It uses the calendar year as its reporting period. The equipment has an expected...

Hall Company acquired equipment for $350,000 on September 1st 2007. It uses the calendar year as its reporting period. The equipment has an expected life of 5 years and a salvage value of $50,000.

(a) Suppose that Hall uses the 150% declining balance method for depreciation and that Hall sold the equipment on June 30th 2011 for $70,000 cash. Prepare the appropriate journal entry that Hall should record for the sale of the equipment on June 30th 2011.

(b) Now suppose that Hall uses the SUMYD method for depreciation and that Hall sold the equipment on December 31st 2011 for $120,000 cash. Prepare the appropriate journal entry that Hall should record for the sale of the equipment on December 31st 2011.