Question

On January 2, 2017, Couture Ching Consigmore purchased howoon factures $12.000 cash, puting the fures to remain i n for the years Couture has deprecathers on a double-cigare basis with zero v e O d bor 31, 2018 Couture sold the futures for 55.000 or beth depreciation expense for 2018 and sale of the futures on October 31, 2018 Record deb t , the credits Select the p ain on the last line of the may be Nor d en s recorded and posted in 2011 Debat Begin by recording the depreciation for January 1, 2018 through October 31, 2018 Accounts and Explanation Oct 31 D econ Esperse Faures Acumulated Depreciation-Four Before recording the sale of Sures, let's calculate any gain or on the sale of the stres Le Book value of a disposed of Less Acounted Depreciation Now record the sale off res on October 31, 2018 number in the outloos contat o MacBook Air

Answer 1

Answer 1:

Cost of fixtures = $12,000

Double declining depreciation rate = 200% / useful life = 200% / 5 = 40%

Depreciation for 2017 = 12000 * 40% = $4,800

Book value at the end of 2017 = 12000 - 4800 = $7,200

Depreciation from Jan 1, 2018 to Oct 31, 2018 = 7200 * 40% * 10/12 = $2,400

Account and Explanations Debit Credit Date Depreciation expense - Fixtures $2,400 Oct. 31 Accumulated Depreciation - Fixtures $2,400 To record depreciation on fixtures

Answer 2:

Accumulated depreciation -Fixtures as on Oct 31, 2018 = 4800 + 2400 = $7,200

$5,900 Market value of assets received Less: Book value of asset disposed of: $12,000 Cost ($7,200) $4,800 Less: Accumulated depreciation Gain or (Loss) $1,100

Answer 3:

Account and Explanations Debit Credit Date $5,900 Cash Oct. 31 Accumulated Depreciation - Fixtures $7,200 $12,000 Fixtures $1,100 Gain on sale of fixtures To record sale of fixtures