Exercise 11-16 Account Titles and Explanation Debit Credit Account Titles and Ex

Question

Exercise 11-16

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Exercise 11-16

Presented below is information related to equipment owned by Monty Company at December 31, 2017.
Cost $11,250,000 Accumulated depreciation to date 1,250,000 Expected future net cash flows 8,750,000 Fair value 6,000,000
Assume that Monty will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.

Explanation / Answer

a) Date Accounts title and Explanation Debit Credit dec-31-2017 Loss on impairment 1250000 Accumulated depreciation 1250000 (11250000-1250000-8750000) ( To record the impairment loss on the equipment) b) Date Accounts title and Explanation Debit Credit dec-31-2018 Depreciation Expense 2187500 Accumulated depreciation 2187500 (11250000-1250000-1250000)/4 ( To record the depreciation expense on equipment) c) Date Accounts title and Explanation Debit Credit dec-31-2018 No entry

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.