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s w Canvas Academica Mail Apple D Bing G Google » Other yPLUS Weygandt, Accounting Principles, 12e PRINCIPI ES OF ACCOUNTING 1 & ll (ACC 201 202) BACK TRESOURCES Quiz Exercise 257 The following are independent situations Brown Company purchased equipment in 2010 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful lide. At December 31, 2016, there was $98,000 in the Accumulated Depréciation account for this equipment using the straight-ine method of depreciation. On March 31, 2017, the equipment was sold for $40,000. Prepare the appropriate journal entries to remove the equipment from the books of Brown Company on March 31, 2017 (Credit account titles are automatically indented when the anovant is entered. Do not indent Choice No. Account Titkes and Explanation Debit Credit ods? eople wh t the mor r the bett Choice To recond depreciation expense for the fest 3 montes of 20n 2. te even m o. This incl These are choose to To recoed sale of equipment at a loss) Finney Company sold a machine for $15,000. The machine orkginally cost $35,000 in 2014 and $8,000 was spent on a major overhaul in 2017 (charged to thee Equipment account). Accumulabed Deprecation ce the machine to the date of disposal was Prepare the appropriate journal entry to record the disposition of the machine(Ceir accoue cirles are aufematicaly indented when the amount is entered. Do not inlent manualily) Account Titles and Explanation election? interviews ng the mair ob training and also co and gain inf e is in perso ying to reta ning you are Stanley Comoany sold office equipment that had a book value of $12,000 for $16,000. The office equipment orlginally cost 40,000 and it is estimated that it would cost $50,000 to replace the office equipment Prepare the appropriate journal entry to record the disposition o the office equipment. (Creit accoest titles are autonatically indreated when the amount is entered?Do not indent manually. ocount Tes and Explonation tion? graphic rat d rating scale anizations? O Type here to search

Explanation / Answer

Case-1 JOURNAL ENTRIES S.No. ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ 1 Depreciation expense Dr.(140000/10*3/12) 3500     Accumulated depreciation 3500 2 Accumulated depreciation Dr. 101500 Cash Account 40,000 Loss on disposal of assets Dr. 8500        Equipment Account 150,000 Case-2 1 Accumulated depreciation Dr. 28000 Cash Account Dr. 15000        Equipment Account (35000+8000) 43000 Case-3 1 Accumulated depreciation Dr. (40,000-12000) 28000 Cash Account Dr. 16000      Equipment Account 40000      Gain on disposal of Assets 4000

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