Case C

Robert Sporting Goods Company had purchased some equipment (Q107) on January 1, 2014 for $104 000 with an estimated salvage value of $8 000 and a 10-year useful life. On December 31, 2020, there was $67 200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. In preparation for expansion, on March 31, 2021, that equipment was sold for $21 000.

Required:

i) Complete the following schedule of useful working.

Equipment (Q107):	$
Cost	Answer
Salvage Value	Answer
Depreciable base	Answer
Annual Depreciation charge	Answer
Accumulated depreciation to the date of disposal	Answer

ii) Prepare the necessary journal entries to record the disposal of the equipment on March 31, 2021. When selecting from dropdown lists, if a line item does not apply, select NA and place zero in the field in the number column. Do not leave any number fields blank.

March 31, 2021

Dr AnswerDepreciation ExpenseAccumulated DepreciationCashEquipmentNALoss on DisposalGain on Disposal	$Answer
CrAnswerCashLoss on DisposalNADepreciationEquipmentAccumulated DepreciationGain on Disposal		$Answer
Dr Cash	$Answer
Dr AnswerGain on DisposalEquipmentNALoss on DisposalDepreciation Expense	$Answer
Dr AnswerLoss on DisposalGain on DisposalNADepreciation ExpenseAccumulated Depreciation	$Answer
Cr AnswerNAEquipmentDepreciation ExpenseLoss on Disposal		$Answer
Cr AnswerNAAccumulated DepreciationGain on Disposal		$Answer