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On January 1, 2017, Hong Kong International Airport Limousine Co. purchased a limo at an acquisition cost of HK$280,000. The vehicle has been depreciated by
On January 1, 2017, Hong Kong International Airport Limousine Co. purchased a limo at an acquisition cost of HK$280,000. The vehicle has been depreciated by the straight-line method using a 4-year service life and a HK$40,000 residual value. The companys fi scal year ends on December 31. Instructions: Prepare the journal entry or entries to record the disposal of the limousine assuming that it was: (a) Retired and scrapped with no residual value on January 1, 2021. (b) Sold for HK$50,000 on July 1, 2020
On January 1, 2017, Hong Kong International Airport Limousine Co. purchased a limo at an acquisition cost of HK$280,000. The vehicle has been depreciated by the straight-line method using a 4-year service life and a HK$40,000 residual value. The companys fi scal year ends on December 31. Instructions: Prepare the journal entry or entries to record the disposal of the limousine assuming that it was: (a) Retired and scrapped with no residual value on January 1, 2021. (b) Sold for HK$50,000 on July 1, 2020
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
