Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ivanhoe Co. purchased equipment on March 1, 2019, for $110.000 on account. The equipment had an estimated useful life of five years, with a residual

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Ivanhoe Co. purchased equipment on March 1, 2019, for $110.000 on account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on February 1, 2022. Ivanhoe Co uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end Record the acquisition of the equipment on March 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Mar. 1 (To record purchase of equipment on account.) Record depreciation at August 31, 2019,2020, and 2021. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) 2019 Record depreciation at August 31, 2019,2020, and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) 2019 Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) 2020 Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) 2021 LISTI Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) Record the disposal on February 1, 2022. under the following assumptions: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) 1. 2 3. It was scrapped with no residual value. It was sold for $62.720. It was sold for $52.990 It was traded for new equipment with a list price of $95,500. Ivanhoe was given a trade in allowance of $51,500 on the old equipment and paid the balance in cash. Ivanhoe determined the old equipment's fair value to be $55,140 at the date of the exchange 4. Date Account Titles and Explanation Debit Credit 2022 Feb. 1 A Vic AL (To record depreciation expense.) Qu Acte 1. Feb. 1 Que ACE (To record disposal) 2. Feb. 1 (To record disposal 3 Feh Question 2 of 4 - /15 = (To record disposal) 3. Feb. 1 V O (To record disposal) 4 Feb, 1 LES (To record disposal.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

3rd Edition

0136946690, 978-0136946694

More Books

Students also viewed these Accounting questions

Question

Describe the benefits of studying intersectionality.

Answered: 1 week ago

Question

=+ What scenarios could draw the audience in?

Answered: 1 week ago

Question

=+ What graphics could stop the viewer?

Answered: 1 week ago