(NO CURSIVE WRITING PLEASE! Last question the person's writing was messy and I could barely even read it)
Problem 9-8A
Cullumber Co. purchased equipment on March 1, 2019, for $135,000 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. Cullumber 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.
ACCT 1110 - A13 - Spring 2021 / Chapter 9 - #2 *Problem 9-8A Cullumber Co. purchased equipment on March 1, 2019, for $135,000 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. Cullumber Co. uses the diminishing-balance method of depreciation with 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end. Your answer is partially correct. Try again. 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 0 for the amounts.) Debit Credit Date Account Titles and Explanation Mar. 1 (To record purchase of equipment on account.) Your answer is partially correct. Try again. 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 0 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 XE (To record depreciation expense.) 2021 Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) Your answer is partially correct. Try again. 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 o for the amounts.) 1. It was scrapped with no residual value. 2. It was sold for $76,020. 3. It was sold for $66,090. 4. It was traded for new equipment with a list price of $98,000. Cullumber was given a trade-in allowance of $54,000 on the old equipment and paid the balance in cash. Cullumber determined the old equipment's fair value to be $68,240 at the date of the exchange. Debit Credit Date Account Titles and Explanation 2022 X Feb. 1 (To record depreciation expense.) 1. Feb. 14 X X (To record disposal.) 2. Feb. (To record disposal.) 3. Feb. 14 X X (To record disposal.) 4. Feb. 1 x th X (To record disposal.)
