Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A purchased equipment in 2026 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December

Company A purchased equipment in 2026 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2027, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2028, the equipment was sold for $21,000.

Prepare the appropriate journal entries to remove the equipment from the books of Company A on March 31, 2028.


(b) Company B sold equipment for $11,000. The equipment originally cost $25,000 in 2025 and $6,000 was spent on a major overhaul in 2028 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.

Prepare the appropriate journal entry to record the disposition of the equipment.

(c) Company C sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment.

Prepare the appropriate journal entries to record the dispositions of the equipment.

Step by Step Solution

3.46 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

a Journal Entries for Company A On March 31 2028 1 To remove the equipment from the books Accumulate... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

11th Canadian edition Volume 1

1119048532, 978-1119048534

More Books

Students also viewed these Accounting questions

Question

Why are policies especially important in strategy implementation?

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago

Question

What are the 5 Cs of marketing channel structure?

Answered: 1 week ago