P1B

Plant and equipment

Details of D&D's property, plant, and equipment are provided in the data file.

Buildings, mobile equipment, automobiles, and office equipment are depreciated using the

straight-line method. Tools and equipment are depreciated using the declining balance

method. The depreciation rates on tools and equipment vary from 17.5% to 33% per year.

Computer equipment is depreciated using a double-declining rate method at 62.5% per

year.

On January 1, 20X7, warehouse equipment with a cost of $85,600 was delivered. The

equipment was immediately put into service. The useful life is expected to be 11 years, with

an expected residual value of $10,500. This equipment is depreciated using the declining

balance method at a rate of 17.5%. The invoice for this equipment was received and paid,

but was inadvertently not recorded.

On December 31, 20X7, the company disposed of several hand tools. The cost of these

tools was $21,300, and accumulated depreciation as at December 31, 20X6, was $18,899.

The equipment sold for total proceeds of $6,500. The funds received were recorded by the

company as a gain on sale of property, plant and equipment of $6,500.

Depreciation for 20X7 has not yet been recorded for any of the property, plant, and

equipment (PPE) held by the company.

What are all the necessary journal entries to record and correct the PPE transactions detailed above. See the Dep amounts