View Policies Current Attempt in Progress Blossom Co purchased equipment on March 1, 2019, for $130,000 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. Blossom 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Mar 1 (To record purchase of equipment on account.) Record denreciation at August 31, 2019, 2020, and 2021. (Credit account titles are automatically indented when the amount is Aug. 31 (To record depreciation expense.) 2020 Date Account Titles and Explanation Debit Credit Aug. 31 (To record depreciation expense.) 2021 Debit Credit Date Account Titles and Explanation 3C Mostly cloudy - (To record depreciation expense.) 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. It was scrapped with no residual value. 2. It was sold for $73,360. 3. It was sold for $63,470. 4. It was traded for new equipment with a list price of $97,500. Blossom was given a trade-in allowance of $53,500 on the old equipment and paid the balance in cash. Blossom determined the old equipment's fair value to be $65,620 at the date of the exchange. Credit Debit Date Account Titles and Explanation 2022 Feb. 1 3C Mostly cloudy ^ Bi - / 15 (To record depreciation expense.) 1. Feb. 1 (To record disposal.) 2. Feb. 1 (To record disposal.) 3. Feb. 1 3C Mostly cloudy A (To record disposal.) 4. Feb. 1 (To record disposal.) Attempts: 0 of 1 used Submit Answer Save for later 3C Mostly cloudy ^