Question

Current Attempt in Progress Ivanhoe Company sells office equipment on July 31, 2017, for $22,410 cash. The office equipment originally cost $81,920 and as of January 1, 2017, had accumulated depreciation of $37,600. Depreciation for the first 7 months of 2017 is $4,580

Answer 1

Ans:

Requirement a

Transaction	Date	Accounts title and explanation	Debit	Credit
a	Jul-31	Depreciation expense	$                 4,580.00
		Accumulated depreciation		$            4,580.00
		(To record depreciation for 7 months)

Requirement b

Transaction	Date	Accounts title and explanation	Debit	Credit
b	Jul-31	Cash	$22410
		Accumulated depreciation($ 37600+4580)	$ 42180
		Loss on disposal of Equipment	$    17330
		Equipment		$         $81,920
		(To record disposal of equipment)

Working

Market value of asset received		$              22,410
Less: Book value of asset disposed off
cost	$            81,920
Less: Accumulated depreciation till disposal date	$         $ 42180	$              44,320
Gain(Loss)		$              (17,330)

					Accumulated	=	Common	+	Revenue	-	Expense	-	Dividend
	Cash	+	Equipment	-	Depreciation		Stock
Bal			81,920		-37600
a)					-4580						-4,580
b)	22,410		-81920		42180						-17330

Depreciation Expenses-4580

Loss On sale-17330