Question
Question #3 Capital Assets (4 marks) End-of-Term Company (EOT) uses straight-line deprecation, recorded monthly, and has a December 31 year-end. On January 1, 2020, EOT
Question #3 Capital Assets (4 marks)
End-of-Term Company (EOT) uses straight-line deprecation, recorded monthly, and has a December 31 year-end. On January 1, 2020, EOT purchased equipment for $200,000 and an estimated residual value of $20,000. EOT estimates that they will use the equipment for 10 years.
On March 31, 2023, EOT sells the equipment for $50,000.
Required:
Prepare the journal entries to record the depreciation for 2023 and the sale of equipment in 2023 (4)
| DATE | ACCOUNT | DEBIT | CREDIT |
|---|---|---|---|
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Independent Review For Banks The Complete BSA AML Audit Workbook
Authors: Howard Steiner, Stephen L. Marini
1st Edition
0615237908, 978-0615237909
