Question
a) At December 31st of the previous year, Pine had a machine that had cost $40,000, had accumulated depreciation of $12,000, and zero residual value.
a) At December 31st of the previous year, Pine had a machine that had cost $40,000, had accumulated depreciation of $12,000, and zero residual value. Pine uses diminishing (declining) balance depreciation at a rate of 30% per year. On September 1st of the current year, Pine sold the machine for $15,000. Prepare the journal entries for Pine on September 1st to update depreciation for the eight months to September 1st and to record sale of the machine. b) Pine uses the perpetual inventory method and records sales, sales returns, and related entries under IFRS presuming an expected sales return of 5%. A customer returned to Pine merchandise that had been sold on credit for $1,000. The goods had cost Pine $700 and were restored to inventory. Prepare the journal entries for Pine. c) Pine's gross salaries for the most recent pay period were $15,000. Deductions included $800 for Canada Pension Plan (CPP), $500 for Employment Insurance (El), and $3,700 for income tax. Record the journal entry for Pine to record payment of salaries
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