Question #$3(22$ marks$)$

A new piece of equipment worth $$65,643$ was purchased on November $4,2022,$ by Paperclip Office Supplies.

The next day, the company modified it at a cost of $$2,179$ and placed it on a new platform that cost $$2,510.$

The equipment should have a life of $5$ years and has an expected residual value of $$9,418.$ Depreciation is

charged on a straight$-$line basis to the nearest whole month. Depreciation was charged on December $31,$

$2022,$ through December $31,2023,$ and on February $28,2024,$ the company disposed of the equipment.

REQUIRED:

Prepare the journal entries to record the purchase of the equipment, the cost of repairing it$,$ and the

installation. Assume that cash was paid.

Prepare entries to record depreciation on the equipment on December $31,2022$ and on February

$28,2024.$

Prepare entries to record the retirement of the equipment under each of the following unrelated

assumptions:

a$)$

Cash received $=$$$17,813$

b$)$

Cash received $=$$$62,744$