Question
Can someone help fill in these values in the chart with instructions on how? Shown below are the T accounts relating to equipment that was
Can someone help fill in these values in the chart with instructions on how?
Shown below are the T accounts relating to equipment that was purchased for cash by a company on the first day of the current year. The machine depreciated on a straight-line basis with a estimated useful life of ten years and a residual value of $360.
Part of the equipment was sold on the last day of the current year for cash proceeds while the remaining equipment that was not sold became impaired.
Reconstruct the journal entries to record the following and figure out the missing amounts:
(a) Purchase of equipment on January 1. What was the cash paid? (b) Depreciation recorded on December 31. What was the depreciation expense? (c) Sale of part of the equipment on December 31. What was the gain on disposal? (d) Partial impairment loss on the remaining equipment on December 31. What was the impairment loss?
Cash Jan. 1 1,334 Equipment 3,310 Dec. 31 Jan. 1 Dec. 31 1,324 Accumulated Depreciation-Equipment Dec. 31 295 Dec. 31 118 Dec. 31 60 Depreciation Expense Dec. 31 Gain on Disposal Dec. 31 Impairment Loss Dec. 31Step by Step Solution
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