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Complete this question by entering your answers in the tabs below. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of each year for Year 1 through Year 6 . (Round your answers to the nearest dollar amount.) Complete this question by entering your answers in the tabs below. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6 . (Round intermediate calculations and final answer to nearest dollar amount.) Use a horizontal statements model to show the effects of these transactions on the elements of the financial statements. Use + for increase, - for decrease, +1 - for both increase and decrease, and leave blank for not affected. The first event is recorded as an example. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and leave blank to indicate the element is not affected by the event.) Complete this question by entering your answers in the tabs below. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . (Round your answers to the nearest dollar amount.) repare the journal entry for the disposal of the equipment on October 1, Year 6 . (If no entry is required for a transaction/event, select No journal entry required" in the first account field.) Journal entry worksheet Record entry for disposal of the equipment on October 1, Year 6. Note: Enter debits before credits. Morris incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1: Janoary 1, Year 1 Purchased equipent for $108,000 ess. The equipment was estinated to have a five-year 11 fe and $7,000 salvage value and was to be depreciated using the straight-1ine nethod. December 31, Year 1 Recorded depreclation expense for Year 1. September 30 , Year 2 Undertook roatine repairs costing $900. Decenber 31, Year 2 Recorded depreciation expense for Year 2. January 1, Year 3 Made an adjustment costing $4,200 to the equipment, It improved the quality of the output but did not af fect the life and salvage value estimates. December 31, Year 3 Recorded depreciation expense for Year 3. June. 1, Year 4 Incurred $2,650 cost to oil and cleas the equipment. Decenber 31, Year 4 Recorded depreciation expense for Year 4. January 1, Year 5 Had the equipent completely overhasled at a cost of $12,600. The overhaul was estimated to extend the total life to seven years. The salvage value did not change. December 31, Year 5 Recorded depreciation expense for Year 5. October 1, Year 6 Received and accepted an offer of $37,000 for the equipaent. Required a. Use a horizontal statements model to show the effects of these transactions on the elements of the financial statements. Use + for. increase, - for decrease, +1 - for both increase and decrease, and leave blank for not affected. The first event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6. c. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of each year for Year 1 through Year 6. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. e. Prepare the journal entry for the disposal of the equipment on October 1, Year 6
