Sandhill Co. purchased equipment on March 1, 2019, for $97.500 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. Sandhill 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 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.) Date Account Titles and Explanation Debit Credit Mar. 1 Equipment accounts payable (To record purchase of equipment on account.) 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 Depreciation Expense Accumulated Depreciation - Equipment (To record depreciation expense.) 2020 Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) -71 2021 Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) e Textbook and Media List of Accounts 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. 2. It was scrapped with no residual value. It was sold for $56,070. It was sold for $46,440. 3. 4. It was traded for new equipment with a list price of $94.250. Sandhill was given a trade-in allowance of $50.250 on the old equipment and paid the balance in cash. Sandhill determined the old equipment's fair value to be $48,590 at the 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 2. 3. It was scrapped with no residual value. It was sold for $56,070 It was sold for $46,440. It was traded for new equipment with a list price of $94.250. Sandhill was given a trade-in allowance of $50,250 on the old equipment and paid the balance in cash. Sandhill determined the old equipment's fair value to be $48,590 at the date of the exchange. 4. Date Account Titles and Explanation Debit Credit 2022 Feb. 1 Accumulated Depreciation Equipment Loss on Disposal (To record depreciation exiense.) 1. Feb. 1 Cash Accumulated Depreciation Equipment
