Homework: Week 6- Chapter 09 problems Save Score: 0 of 1 pt 3 of 6(1 complete) H
ID: 2430506 • Letter: H
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Homework: Week 6- Chapter 09 problems Save Score: 0 of 1 pt 3 of 6(1 complete) HW Score: 4.29%, 0.26 of 6 pts P10A-35A (similar to) EQuestion Help During 2016, Lenora Company completed the following transactions (Click the icon to view transactions) Record the transactions in the journal of Lenora Company. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Jan. 1: Traded in old office equipment with book value of $50,000 (cost of $117,000 and accumulated depreciation of $67,000) for new equipment Lenora also paid $85,000 in cash. Fair value of new equipment is $141,500. Assume the exchange had commercial substance. (Record a single compound journal entry) Date Accounts and Explanation DebitCredit Jan. 1 Choose from any list or enter any number in the input fields and then dlick Check Answer Check Answer Clear AlExplanation / Answer
*Depreciation expense = $141500 x 50% = $70750
Straight line depreciation rate = 100%/4 years = 25%
DDB rate = 25% x 2 = 50%
Date Accounts and Explanation Debit Credit Jan. 1 Office equipment (new) 141500 Accumulated depreciation-office equipment (old) 67000 Office equipment (old) 117000 Cash 85000 Gain on disposal of equipment 6500 (To record trade-in of office equipment) Apr. 1 Depreciation expense ($12000/5 x 3/12) 600 Accumulated depreciation-equipment 600 (To record depreciation up to date of disposal) Apr. 1 Cash 3200 Accumulated depreciation-equipment ($6000 + $600) 6600 Loss on disposal of equipment 2200 Equipment 12000 (To record sale of equipment) Dec. 31 Depreciation expense* 70750 Accumulated depreciation-office equipment 70750 (To record depreciation expense)Related Questions
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